Sector Glance: Online content
NEW YORK --Shares of online content companies traded mixed Friday, with job site operator Monster Worldwide Inc. climbing after the federal government reported healthy June employment figures.
Monster shares rose $1.32, or 3.2 percent, to $43.03. In the past year, the stock has traded between $34.81 and $54.79.
In a note to clients Friday, Robert W. Baird & Co. analyst Mark Marcon wrote the employment report "points to a very healthy labor market" which generally serves employment services stocks, he said.
The unemployment rate for college-educated people remained at 2 percent, which is "a positive factor" for recruiting-related companies, Online job boards like Monster and some staffing firms, he wrote.
Also Friday, Thomas Weisel analyst Christa Quarles wrote in a client note that while she expects the company's careers growth to be strong, she expects Monster to post weaker Internet advertising and fees growth in its second quarter.
Quarles wrote she now expects North America careers growth of 13 percent year over year, compared with an earlier estimate of 12.3 percent, and international careers growth of 54.4 percent year over year, compared with an earlier estimate of 53 percent.
She cut her estimate for Internet advertising and fees growth to 4.6 percent year over year from an earlier expectation of 10.6 percent.
The analyst, who holds an "Overweight" rating and $56 price target for the stock, kept her second-quarter estimate for the company, but lowered her 2007 earnings-per-share estimate to $1.29 from $1.31. She also lowered her 2008 estimate slightly.
Here's how the key online content providers fared in trading Friday:
WebMD Health Corp., down $1.54 to $46.06.
The Knot Inc., up 21 cents to $20.61.
Answers Corp., up 49 cents to $12.29.
CNET Networks Inc., down 7 cents to $8.17.
TheStreet.com Inc., up 10 cents to $11.31.
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