Bidz.com: Merriman Downgrades, Cuts Estimates; Stock Slides
Bidz.com (BIDZ) shares are down sharply today after Merriman Curhan Ford analyst Eric Wold cut his rating on the online jewelery auction site to Neutral from Buy. He cut his 2008 EPS estimate to 55 cents, from 58 cents, and trimmed 2009 to 63 cents, from 71 cents. His revenue estimates drop to $235.3 million from $240.5 million for this year, and to $272.7 million from $287.4 million for next year.
Wold writes in a research note that while Bidz.com is “uniquely positioned to offer consumers a discounted way to purchase jewelery,” he adds that “we cannot assume that Bidz.com will be immune from an overall slowdown in consumer spending.”
Wold notes that he had cut numbers on the company just last week, based on his view that the company was being hurt by worsening economic trends. But he says trends have already declined further.