Should You Exit Rocket Fuel Inc (FUEL), World Wrestling Entertainment Inc. (WWE), And Antero Resources Corp (AR)?
New York, NY – GDP INSIDER – 01/08/2014.
It turns out that trouble is brewing ahead in the online advertising industry, and Rocket Fuel Inc (NASDAQ:FUEL) will likely not escape the challenges. Analysts have cited that there is not enough room for everyone in the industry, and that only established providers could survive.
With major technology names such as Facebook Inc (NASDAQ:FB) and Google Inc (NASDAQ:GOOGL) scaling up, those that can’t get large in good time may be left out. Investors fear Rocket Fuel Inc (NASDAQ:FUEL) could be among the providers left in the cold.
As competition builds up in the managed-service sector, Rocket Fuel Inc (NASDAQ:FUEL) hinted at plans to enter SaaS. The company disclosed having more than 1,000 customers under its managed-service segment and 137 customers under SaaS. Rocket Fuel saw its revenue up 63% to $102.1 million in 3Q, a quarter that was supported by the acquisition of [x+1].
The lowering of World Wrestling Entertainment, Inc. (NYSE:WWE)’s rating at Zacks and the hiring away of one of the company’s managers weren’t good enough news items reaching investors. Zacks downgraded the stock to a “Neutral” from an “Outperform”, but maintained a target price that is above the prevailing one.
In other developments, World Wrestling Entertainment, Inc. (NYSE:WWE)’s Patrick Talty, who was VP of live events, was hired away by Minnesota Vikings stadium. The exit of such a high-flying talent from WWE didn’t impress investors, hurting the stock of the media and entertainment company.
Antero Resources Corp (NYSE:AR) plans to lay off over 250 contract land brokers. Although the company tried to explain the reason behind the move, investors read too much into the development and ended up making moves that left the stock falling almost 4%.
First, Antero Resources Corp (NYSE:AR) said that the layoff of the contract land brokers will not affect its employees. Additionally, the company revealed that the layoff will help it focus more on drilling than land acquisition.
Energy companies have been impacted by falling oil prices, causing them to reevaluate their capital allocation.
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