Opentable Inc. (OPEN): Technology's Featured Underachiever Of The Day

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Opentable ( OPEN) pushed the Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day up 0.5%. By the end of trading, Opentable fell $1.63 (-2.6%) to $61.57 on average volume. Throughout the day, 605,720 shares of Opentable exchanged hands as compared to its average daily volume of 638,400 shares. The stock ranged in price between $60.94-$63.97 after having opened the day at $63.51 as compared to the previous trading day's close of $63.20. Other companies within the Technology sector that declined today were: Affymetrix ( AFFX), down 13.7%, LookSmart ( LOOK), down 11.6%, Dialogic ( DLGC), down 10.5%, and LiveDeal ( LIVE), down 8.6%.
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OpenTable, Inc. provides restaurant reservation solutions primarily in the United States, Canada, Germany, Japan, Mexico, and the United Kingdom. It offers solutions that form an online network connecting reservation-taking restaurants and people who dine at those restaurants. Opentable has a market cap of $1.44 billion and is part of the internet industry. The company has a P/E ratio of 61.1, above the S&P 500 P/E ratio of 17.7. Shares are up 29.5% year to date as of the close of trading on Monday. Currently there are two analysts that rate Opentable a buy, one analyst rates it a sell, and seven rate it a hold.

TheStreet Ratings rates Opentable as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, robust revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, First Solar ( FSLR), up 45.5%, Suntech Power Holdings ( STP), up 29.2%, LDK Solar Company ( LDK), up 23.4%, and Yingli Green Energy Holding Company ( YGE), up 21.1%, were all gainers within the technology sector with Hewlett-Packard ( HPQ) being today's featured technology sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

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