Why RetailMeNot (SALE) Stock Is Dropping Today

NEW YORK (TheStreet) -- Shares of RetailMeNot Inc. (SALE) are lower by -6.09% to $24.69 in mid-afternoon trading on Monday following a negative report from the Wall Street Journal which said an increase in competition on Google (GOOGL) and a change in advertising models places the company in an "increasingly precarious position."

RetailMeNot is an online coupon company that generates the majority of its sales through commissions earned on online purchase through "last-click attribution," which is when its site is the last place a user clicks before buying an item, the Journal said.

Retailers could slowly be adopting "more sophisticated attribution metrics" focused on evaluating where a referral appears in the purchase process, according to the Journal.

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The report also points out that RetailMeNot is at the mercy of Google, which recently updated its algorithm on May 20, the company's SEO visibility fell 48% after the update.

SALE Chart SALE data by YCharts

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