1-Star Stocks Poised to Plunge: MeetMe?
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, social network platform operator MeetMe (ASE: MEET) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at MeetMe and see what CAPS investors are saying about the stock right now.
MeetMe facts
Headquarters (founded) | New Hope, Pa. (1997) |
Market Cap | $148.4 million |
Industry | Internet software and services |
Trailing-12-Month Revenue | $31.4 million |
Management | Chairman/CEO John Abbott |
Trailing-12-Month Return on Equity | (24.5%) |
Cash/Debt | $5.9 million / $11.9 million |
Competitors |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 52% of the 155 members who have rated MeetMe believe the stock will underperform the S&P 500 going forward.
Just last week, one of those Fools, AygHead, succinctly summed up the MeetMe bear case for our community:
This stock is surging because of speculation that this will be the next [Facebook]. In the meantime, it is burning cash at an extremely fast rate and is not profitable. Facebook will surely be pulling market share from these guys, or will buy them. No need for two players in the unimportant "post my pictures and tell my friends what [I'm] doing online to pass time" business.
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The article 1-Star Stocks Poised to Plunge: MeetMe? originally appeared on Fool.com.
Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool owns shares of Facebook and has the following options: long JAN 2014 $20.00 calls on Facebook. Motley Fool newsletter services recommend Facebook. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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