- SA contributor Gotham City Research claims at least half of Blucora's (BCOR -15.9%) Web traffic stems from "suspect" sources such as malware, click fraud, and illicit searches (inc. child pornography). The firm predicts over 60% of Blucora's revenue will disappear as search ad partner Google, whose ongoing ad policy overhaul has wreaked havoc on peers, decides it's "better off without Blucora."
- Gotham asserts Blucora, known as Infospace during the Dot.com bubble era, has "a storied history of defrauding investors, customers, and vendors," and claims 94.8% of Infospace.com's traffic goes to "a known redirect virus/browser hijacker." It also calls Blucora's current/past business partners "a 'who's who' of the worst malware/click fraud offenders."
- Over 80% of the traffic from Blucora's top Web properties is said to come from outside of the U.S., yet international markets account for only 1% of revenue. Gotham thinks shares are worth no more than $5, given Google-related risk and ongoing cash burn, and believes they could easily approach $1.
- Blucora's contract with Google is up for renewal next month. Gotham notes that even if Google renews, it can terminate the deal "in the event of certain violations."
Blucora crashes; Gotham City levies malware/click fraud accusations
Feb 18 2014, 12:11 ET