Overture Plunges as Costs Rise

Updated from 5 p.m. EST

Overture Services (OVER Quote) plunged late Thursday after the company warned of a first-quarter shortfall and said costs would rise in 2003.

The setback came as the company posted fourth-quarter results that were in line with Wall Street estimates and maintained its financial guidance for the whole of 2003. But the prospect of a steep shortfall in the first quarter, and the bad news on so-called traffic acquisition costs, a key component of the bearish case on the stock, knocked Overture down 15% in after-hours trading. ...