- RBC Capital's Jordan Rohan is out with some interesting comments on Marchex (NASDAQ:MCHX) saying there are more questions than answers about the sustainability of revenue growth for MCHX. First, the firm believes the company is not likely to see a big uptick from the renegotiation of its Yahoo contract, as some investors had hoped. Second, there is a risk that MCHX will see its payouts "discounted" by Yahoo in 2H07 by up to 20%. Next, after Google's recent move to stop monetization of Made for Adsense (search arb) pages, the attractiveness of moving to Google monetization declined significantly. The alternative: MCHX could stop search arbitrage spending, add content to every domain, and accept a higher risk of a near-term earnings miss. RBC remains on the sidelines. Sector Perform, $13 tgt.
Notablecalls: Looks like there may be some downside in store for MCHX over the next couple of days.
Notablecalls: Looks like there may be some downside in store for MCHX over the next couple of days.
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