Will ValueClick Be The First Major Tech Stock To Bite The Dust?

ValueClick, the holding company that controls major advertising/shopping properties Mediaplex, Comission Junction and PriceRunner, has had their stock turn from ‘Buy’ to ‘Neutral’ on news of Bank Of America downgrading all online display advertising companies.
In a recession, online display advertising is one of the least economical ways for advertisers to spend their money due to low CTR, high bounce rates and often immeasurable demographic metrics.
All of Internet advertising is taking a hit though. Google saw a major drop in their stock when they pulled back their earnings forecasts this week, while ValueClick has seen their stock drop to $7.49 from a high of $29.97 this year. Ouch.
This isn’t all ValueClick is worried about. The Google Affiliate Network is about to surge as the largest CPA advertising network in the world over Commission Junction, a profitable asset for ValueClick. Google is already gaining speed and as soon as they integrate analytics for publishers, it will be over for ValueClick affiliate marketing.
Lastly, their PriceRunner comparison shopping search still has momentum in Europe, but back home they are a second thought, even more so now with people’s wallets closing shut from the financial crisis.
Their market cap is currently valued at $670M.
We got word that their recent head of M&A, Sam Paisley, just jumped ship to SpotRunner.

Is it possible ValueClick will be the first major tech stock to bite the dust?

A tiny exclusive