ValueClick

• ValueClick, the holding company that controls major advertising/shopping properties Mediaplex, Comission Junction and PriceRunner, is on the fritz. Big time.
• Display advertising is one of the ValueClick’s biggest revenue drivers, which at the moment is 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 $5.42 from a high of $29.97 this year. Ouch.
• This isn’t all ValueClick is worried about. The Google Affiliate Network is quickly becoming 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 down 60% this year to $474M. Watch out for even further falling prices. We called this drop off in October, since then their stock price has fell significantly.
• In related news, Sam Paisley, their former head of M&A has already left for SpotRunner.

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

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