Why Web.com (WWWW) Stock Is Plummeting Today

NEW YORK (TheStreet) -- Web.com (WWWW) was falling 23.4% to $20.35 Friday after missing analysts' estimates for revenue in the second quarter and announcing it will acquire Scoot.

For the second quarter Web.com reported earnings of 62 cents a share, in line with he 62 cents expected by analysts surveyed by Thomson Reuters. Revenue grew 10.1% from the year-ago quarter to $144.66 million. Analysts expected revenue of $146.9 million for the quarter.

Web.com also announced that it will acquire Scott, which owns a U.K. online directory service with more than 2.6 million listings. The company said the acquisition will help give it a foothold in the U.K. as it starts to "build our knowledge base and a platform to serve the international markets." The terms of the deal were not disclosed.

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TheStreet Ratings team rates WEB.COM GROUP INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate WEB.COM GROUP INC (WWWW) 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, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."

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