2024-06-10 17:42:10 ET
Summary
- Perion Network Ltd.'s shares plummeted after the company issued another profit warning as a result of its exclusion from Microsoft Bing's search distribution marketplace.
- Microsoft Bing is apparently cracking down on so-called "Made for Advertising" or "MFA" sites - content farms with a poor user experience designed solely to maximize ad spend.
- Last month, Perion shut down its MFA site network after its business practices had been exposed in an industry report.
- In addition, the search division disaster appears to have impacted the company's core advertising business, with customers likely pulling budgets in an attempt to avoid potential association with the company's MFA practices.
- Even with Perion Network now trading below cash value and an active buyback program in place, investors should abstain from buying the selloff as the company's near-term prospects remain cloudy. However, with the repurchase program likely to provide some support to the shares, I am reiterating my "Hold" rating on the shares.
Note:
I have covered Perion Network Ltd. ( PERI ) previously, so investors should view this as an update to my earlier articles on the company. ...
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Perion Network: Clickbait Disaster