What else would you expect from a company so heavily dependent on advertising? CNet dropped $1.92, or 15.7 percent, to $10.30 after Goldman Sachs’ Anthony Noto rated the stock as an “underperform” and recommended that investors take profits.
CNet is seeing a return to growth with the online advertising recovery, but has lagged behind the rest of the industry in capitalizing on those gains. The company has had below-average sales growth, which ultimately will result in subpar profit growth, Noto said.
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