NEW YORK (TheStreet) -- Shares of Rocket Fuel (FUEL) are plummeting, down 24.98% to $11.08 in mid-morning trading Friday, after analysts at Oppenheimer downgraded the online advertising company to "perform" from "outperform" this morning, following its 2014 fourth quarter earnings release.
Oppenheimer analysts also removed its $22 price target, citing a lack of near-term catalysts.
The firm noted that the digital advertisement company's first-quarter net revenue guidance implies high-teens organic growth. That would represents a slow down from the 34% growth the company reported in the fourth quarter.
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The firm said, "We see no catalysts in the next six month, as management needs to prove it can generate enterprise sales, and scale sales and marketing expenses, currently at 58% of net revenue, to drive EBITDA profitability."
For the fourth quarter, the advertising company posted a loss of 18 cents per share, better than the loss of 21 cents analysts had expected. But, revenue of 139.5 million in the period, missed analysts' forecasts of $145.5 million.
Redwood City, CA-based Rocket Fuel is a technology company that uses its automated decision-making platform to optimize the goals of its advertisers, such as increased sales, heightened brand awareness and decreased cost per customer acquisition.
Separately, TheStreet Ratings team rates ROCKET FUEL INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ROCKET FUEL INC (FUEL) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and feeble growth in its earnings per share."
- You can view the full analysis from the report here: FUEL Ratings Report