3 Stocks Pushing The Internet Industry Lower

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The Internet industry as a whole closed the day up 0.6% versus the S&P 500, which was down 0.2%. Laggards within the Internet industry included Professional Diversity Network ( IPDN), down 4.2%, CafePress ( PRSS), down 4.4%, Synacor ( SYNC), down 1.9%, Taomee Holdings ( TAOM), down 1.8% and Net Element ( NETE), down 2.0%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

Synacor ( SYNC) is one of the companies that pushed the Internet industry lower today. Synacor was down $0.04 (1.9%) to $2.34 on light volume. Throughout the day, 33,902 shares of Synacor exchanged hands as compared to its average daily volume of 50,500 shares. The stock ranged in price between $2.33-$2.36 after having opened the day at $2.36 as compared to the previous trading day's close of $2.38.

Synacor, Inc. provides startpages and homescreens, TV Everywhere solutions, Identity Management services, and various cloud-based services across a range of devices for cable, satellite, telecom, and consumer electronics companies in the United States, and the United Kingdom. Synacor has a market cap of $65.2 million and is part of the technology sector. Shares are down 2.9% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Synacor a buy, 1 analyst rates it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Synacor as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from TheStreet Ratings analysis on SYNC go as follows:

  • SYNACOR INC's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, SYNACOR INC swung to a loss, reporting -$0.04 versus $0.14 in the prior year. For the next year, the market is expecting a contraction of 250.0% in earnings (-$0.14 versus -$0.04).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Internet Software & Services industry. The net income has significantly decreased by 7714.8% when compared to the same quarter one year ago, falling from $0.03 million to -$2.06 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Internet Software & Services industry and the overall market, SYNACOR INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$1.17 million or 56.30% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • This stock's share value has moved by only 17.71% over the past year. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.

You can view the full analysis from the report here: Synacor Ratings Report

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At the close, CafePress ( PRSS) was down $0.21 (4.4%) to $4.59 on heavy volume. Throughout the day, 45,267 shares of CafePress exchanged hands as compared to its average daily volume of 17,500 shares. The stock ranged in price between $4.50-$5.12 after having opened the day at $5.06 as compared to the previous trading day's close of $4.80.

CafePress Inc. operates an e-commerce platform enabling customers to shop, create, and sell various customized and personalized products worldwide. CafePress has a market cap of $84.3 million and is part of the technology sector. Shares are down 24.2% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate CafePress a buy, no analysts rate it a sell, and 4 rate it a hold.

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TheStreet Ratings rates CafePress as a sell. 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.

Highlights from TheStreet Ratings analysis on PRSS go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Internet & Catalog Retail industry. The net income has significantly decreased by 30.9% when compared to the same quarter one year ago, falling from -$3.98 million to -$5.22 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Internet & Catalog Retail industry and the overall market, CAFEPRESS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has declined marginally to -$13.32 million or 8.65% when compared to the same quarter last year. Despite a decrease in cash flow of 8.65%, CAFEPRESS INC is in line with the industry average cash flow growth rate of -16.44%.
  • The share price of CAFEPRESS INC has not done very well: it is down 20.71% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • CAFEPRESS INC's earnings per share declined by 30.4% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, CAFEPRESS INC reported poor results of -$0.78 versus -$0.01 in the prior year. This year, the market expects an improvement in earnings (-$0.05 versus -$0.78).

You can view the full analysis from the report here: CafePress Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Professional Diversity Network ( IPDN) was another company that pushed the Internet industry lower today. Professional Diversity Network was down $0.23 (4.2%) to $5.26 on light volume. Throughout the day, 2,740 shares of Professional Diversity Network exchanged hands as compared to its average daily volume of 6,600 shares. The stock ranged in price between $5.26-$5.69 after having opened the day at $5.69 as compared to the previous trading day's close of $5.49.

Professional Diversity Network, Inc. operates online professional networking communities with career resources in the United States. Professional Diversity Network has a market cap of $31.8 million and is part of the technology sector. Shares are up 9.1% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates Professional Diversity Network a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Professional Diversity Network as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and weak operating cash flow.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Highlights from TheStreet Ratings analysis on IPDN go as follows:

  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Internet Software & Services industry and the overall market, PROFESSIONAL DIVERSITY NETWK's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$0.35 million or 138.51% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The gross profit margin for PROFESSIONAL DIVERSITY NETWK is currently very high, coming in at 70.44%. Regardless of IPDN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, IPDN's net profit margin of -21.24% significantly underperformed when compared to the industry average.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Regardless of the rise in share value over the previous year, we feel that the risks involved in investing in this stock do not compensate for any future upside potential.
  • PROFESSIONAL DIVERSITY NETWK reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, PROFESSIONAL DIVERSITY NETWK swung to a loss, reporting -$0.23 versus $0.27 in the prior year. This year, the market expects an improvement in earnings (-$0.19 versus -$0.23).

You can view the full analysis from the report here: Professional Diversity Network Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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