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QuinStreet (IPO) more an ad agency than Internet company?

|Includes: AABA, GOOG, INET, QuinStreet, Inc. (QNST)

QuinStreet(NASDAQ:QNST) – more an ad agency than an Internet company?  

If yes then lower the P/E multiple.  For example compare to ValueClick (VLCK) more than Internet Brands (INET), see below ‘compare’ in the IPOreport

QNST is a low gross margin service business that is apparently losing it’s competitive edge in the education vertical, but is more than making up for that loss in the financial services vertical.

It’s recent success is making it a visible target for its competition, which includes advertising agencies, other direct marketing service companies plus companies like Google, Yahoo and other web portals.

It appears that the competition is gearing up with more sophisticated pay per click and contextual advertising models, that over time could erode QNST’s prior competitive advantage.

QNST IPOreport