Digital River Inc. (DRIV): Today's Featured Internet Loser

The internet industry closed the day up 1.2%. Atrinsic Inc ( ATRN), HomeAway Inc ( AWAY), Internap Network Services Corporation ( INAP), and Global Sources ( GSOL) were all decliners today within the internet industry with Digital River Inc ( DRIV) being today's featured internet loser. Digital River Inc fell $4.49 (-19.5%) to $18.51 on heavy volume. Throughout the day, 3.4 million shares of Digital River Inc exchanged hands as compared to its average daily volume of 771,100 shares.

Digital River, Inc., together with its subsidiaries, provides outsourced e-commerce solutions worldwide. The company offers a range of services, which enable its clients to establish an online sales channel capability and to manage online sales. Digital River Inc has a market cap of $855.2 million and is part of the technology sector. The company has a P/E ratio of 45.5, above the average internet industry P/E ratio of 44.9 and above the S&P 500 P/E ratio of 17.7. Shares are down 33.2% year to date as of the close of trading on Thursday.

TheStreet Ratings rates Digital River as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and disappointing return on equity.

On the positive front, Renren Inc ADR ( RENN), Youku.com Inc ( YOKU), Quepasa Corporation ( QPSA), and Demand Media Inc ( DMD) were all gainers within the internet industry with Baidu Inc ( BIDU) being today's featured internet industry winner.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the internet industry could consider First Trust Dow Jones Internet Idx ( FDN) while those bearish on the internet industry could consider ProShares Ultra Short Technology ( REW).

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