Google's Impact On Web.com Will Be Less Than Expected
- Web.com's stock has declined 36.4% year to date. The decline is being driven by lower revenue guidance and Google announcing their entrance into the domain industry.
- Google will have an impact on the domain industry but the impact won't be as significant as investors are anticipating. Additionally, Web.com may actually benefit from Google's presents.
- Even if Google doesn't help Web.com, Web.com has been able to perform well in a very competitive market environment.
- Over the last few years, the company's revenue has grow double digits, profitability has significantly improved, and the balance sheet is stronger.
- Investors are overreacting to the Google announcement and have driven Web.com's stock into undervalued territory. This combined with the company's future growth prospects make the stock a great value.