MyPoints stock dropped 56% after the direct-marketing agency reported it would fall short of revenue expectations by about 40%. Shares of MyPoints.com dropped 56% to end trading at $2.16. After the warning, several Wall Street investment banking concerns downgraded Mypoints shares. MyPoints.com
warned that third-quarter revenue and earnings would be between $13.5 million and $14.5 million. MyPoints CEO Steve Markowitz in a statement pegged the disappointing returns to weakened demand for Internet marketing services; however, he also said that the company did grow its membership and added "leading names" during the period. The company also will cut its ranks by 120 employees in an attempt to save $8 million annually. Separately, Real Networks, a streaming media company, also suffered from investors' insecurities about online advertising. The company's stock closed down 11% at $21.19.
Copyright October 2000, Crain Communications Inc.