Why BazaarVoice (BV) Is Down Today

NEW YORK (TheStreet) -- BazaarVoice Inc. BV plunged 14.67% to $7.04 by market closed on Friday, down $1.21 from its previous close of $8.25.

The stock had a volume of 2,803,188, well above its average volume of 540,610. BazaarVoice, which aids companies in running their online consumer reviews, hit a high of $7.30 and a low of $6.94 for the day, and has a one-year high of $11.50 and a one-year low of $6.37.

The dive occurred after a federal court ruled against the company's $168.2 million acquisition of its chief rival, PowerReviews . The court said that the deal could result in one company controlling the online product rating and review market. The U.S. Justice Department sued BazaarVoice in 2013, called its deal anti-competitive and tried to force the company to sell some assets.

Federal judge William Orrick said in his ruling dated Jan. 8, which did not get filed into the federal court Web site until late Thursday, that Bazaarvoice violated the law by acquiring its only true competitor, which could likely cause a lack of competition within the market.

TheStreet Ratings team rates BAZAARVOICE INC as a Sell with a ratings score of D. The team has this to say about its recommendation:

"We rate BAZAARVOICE INC (BV) 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, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."

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