Sentiment on the online coupon site is 89% bearish, according to StockTwits' analytics. And the few analysts that cover the recently IPO'd company are calling for shares to either stay where they are or fall.
The stock recently ran up 35% in anticipation of management revealing positive news during presentations at two financial technology conferences. Coupons.com executives presented at the Merrill Lynch Global Technology conference today and are expected to speak at Goldman Sachs' dotCommerce day tomorrow around 3:25p.m.
$COUP falling as fast is it went up. take your profits longs! 27.19 next stop? Rayne Woo (@Rayneman) Jun. 3 at 02:09 PM
However, Coupons.com shares fell 2% today to just under $30-per-share as little new news emerged from the conference. And most investors and analysts anticipate that the stock will continue to tumble.
The consensus price target on the stock is $26.75, according to the Analyst Ratings Network. BofA Merrill Lynch analysts are the most bullish among those covering Coupons.com with a buy rating and $30 target on the stock. Goldman Sachs has a neutral rating and $21 target.
Many on Stocktwits.com said they didn't understand how the company could have a $2.29 billion market cap.
$COUP I've never even heard of this. How are they making money? I feel like they just post penny saver ads online.
? Rohan Sharma (@datsro24) Jun. 3 at 12:28 PM
Coupons.com has yet to post a profit, but it expects to before the end of the year. The company reported an EPS loss of $0.41 for the past quarter, much larger than the consensus estimate of a $0.07 EPS loss. But it posted greater than anticipated revenues of $51.50 million. Management guided to between $217 and $223 million in revenues for the full year. The company expects to earn between $12 million and $17 million this year.
Some investors argue that Coupons.com revenue growth justifies its market cap.
But most maintain that an online coupon business shouldn't trade like a high-tech company at 87X expected 2015 earnings.
? Jean Fonteneau (@JFinDallas) Jun. 2 at 09:50 PM
At the time of publication, the author held no positions in any of the stocks mentioned.
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.