Perion Network stock dropped 40% due to weaker first-quarter results and lowered revenue outlook.

From Nasdaq: 2024-04-08 21:42:01

Shares of Perion Network (NASDAQ: PERI) tumbled over 40% as the company reported weaker-than-expected first-quarter 2024 results, citing changes in advertising pricing by Microsoft Bing. Revenue is forecasted at $157 million, down 8% from expectations, leading to a reduced full-year outlook of $590-610 million and adjusted EBITDA of $78-82 million.

Perion CEO remains optimistic about their collaboration with Microsoft despite the disappointing outlook. The company also announced a $25 million share buyback authorization increase, reflecting confidence in their ability to succeed in digital advertising. However, investors are cautioned to think twice before investing in Perion Network as it did not make the list of the Motley Fool’s 10 best stocks to buy now.

Analyst Steve Symington does not hold any positions in the mentioned stocks, and the Motley Fool has positions in and recommends Microsoft. The Fool recommends specific options related to Microsoft. As always, the opinions expressed in this article are solely those of the author.



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