DoubleClick, Inc. (Nasdaq: DCLK) fell 1 7/16 to 37 1/16 Monday after analyst Lowell Singer at Robertson Stephens increased his 2000 loss estimate for the controversial Internet advertising company to 10 cents a share from 9 cents.
“Our research suggests that the second quarter has been a challenging period for online advertising companies, and we expect the softness to continue into the third quarter, traditionally a seasonally slow quarter,” Singer said. “It is our belief that the ad networks are enduring greater business pressure than the first-tier e-networks and the leading direct marketers.”
Singer added, “We are reducing our 2000 and 2001 revenue projections, which were already at the low end of Street estimates, to reflect our concern about the online ad market. We do, however, continue to estimate that DoubleClick will reach profitability in the third quarter.”