Demand Media trades down as Q3 results disappoint

|By:, SA News Editor

Shares of Demand Media (DMD -2.4%) are selling off following Q3 results. BusinessWeek's take may reflect the market's sentiment. The magazine labelled results "disappointing," with revenue down 2% Y/Y on a 7% decline in content and media revenue.

The bright spot in yesterday's report, an 11% Y/Y revenue jump in Demand's domain registrar business, is cause for more worry because the company plans to spin it off.

The company has also recently faced 2 defections at the highest levels: founder/CEO Richard Rosenblatt and Chief Innovation Officer Byron Reese, who is credited with pioneering the content farm business.