Seeking Alpha

RetailMeNot -8.1%; report points to Google traffic loss

  • An early analysis from SearchEngine Journal on the impact of Google's Panda 4.0 search algorithm update (just went live) suggests RetailMeNot's (SALE -8.1%) traffic has fallen by ~1/3. Other major sites/platforms such as eBay, Ask.com, and Yellowpages.com are also hard-hit.
  • With RetailMeNot's online coupon/promo code platform and its merchant partners depending heavily on Google traffic, investors are responding harshly.
  • Jefferies is quick to defend the company: The firm argues search algorithm changes "[happen] all the time," and expects RetailMeNot "will be fine" after it readjusts its SEO practices.
Comments (4)
  • Stock Market Mike
    , contributor
    Comments (2729) | Send Message
     
    Down 12.7%.

     

    Hmm... knife, or long term buying opportunity? Must decide...
    22 May 2014, 12:07 PM Reply Like
  • Stock Market Mike
    , contributor
    Comments (2729) | Send Message
     
    -16.0%

     

    Almost too good to pass up, but if the algorithm change really did impact their traffic that much... this could just be the start.

     

    Sadly, I don't know how reputable SearchEngine Journal is. No position.

     

    -Mike
    22 May 2014, 01:05 PM Reply Like
  • Hope128
    , contributor
    Comments (112) | Send Message
     
    Not sure they can blame on Google traffic loss. Whenever I search for deals, RetailMeNot always come up on the top of search result list, but I chose not to use it because I feel it is not as useful as other similar sites.
    22 May 2014, 03:08 PM Reply Like
  • pz2013
    , contributor
    Comments (2) | Send Message
     
    Search Engine Journal has been around for some time. The founder has a lot of experience in the space. In any case, there is no need to take their word for it. The data they cite comes from an analytics firm called SearchMetrics, which probably has a good-sized sample size. I see no reason to doubt that data, but it is definitely the case that RetailMeNot is likely to see that result stabilize from the current shock.

     

    It's interesting in this day and age to see the Pandas and the Penguins affecting the stock prices of publicly-traded companies. As many recall, one or two of these updates were aimed squarely at Demand Media and maybe just a handful of other "content farms." The stock took a hit, the company said they'd be diversifiying their business... and the company did recover, but not convincingly.

     

    RetailMeNot seemed to be a pretty low-quality IPO and valued high. There have been scores of those in the past five years. You never know which ones are going to pan out. Many, like Zillow, remain shaky from a financial standpoint and do not seem to justify their current valuations.
    22 May 2014, 04:26 PM Reply Like
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