SEEKING ALPHA - Oct 28 - While some dating sites are making the right moves to gain ground, Spark Networks continues to fall behind. Here are 4 reasons:
1. Stock Underperformance
One of the most common ways to look for quality stocks is to compare their performance against the broader market. Over the past 52 weeks, Spark Networks is underperforming the market by ~5% and is off its 52 week high by ~18%. The stock fell ~10.5% on the last earnings report.
2. Poor Earnings
Despite the continued growth in revenue, the company continues to see increased operating and net income losses. For the quarter, the company's net loss came in at $3.3M.
3. Aging Business Model
More users flock to sites that continue to innovate upon the social media concept.
Increased competition from young, innovative companies like Snap Interactive.
This post also appears on InternetDatingInvestments.