NEW YORK (TheStreet) -- Youku Tudou (YOKU) stock is lower Friday after the China-based internet company reported first-quarter revenue below consensus and guided for second-quarter sales lower than analysts expected.
By late morning, shares had tumbled 6.9% to $19.
Over its March-ending quarter, the company reported revenue of $112.7 million. Analysts surveyed by Thomson Reuters expected $114.01 million. In its second quarter, the company guided for revenue growth of 25% to 33%, lower than analysts' estimates of 40% growth.
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TheStreet Ratings team rates YOUKU TUDOU INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate YOUKU TUDOU INC (YOKU) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share."
- You can view the full analysis from the report here: YOKU Ratings Report