Shopping.com (NASDAQ: SHOP) is up 5% intraday on a Deutsche Bank upgrade (to hold from sell). The stock is now back where it was prior to its earnings announcement on April 27, and up 20% from a low of $12.90 on April 29.
I’m trying to get my hands on the Deutsche Bank research, but the wires report that “the current multiples reflect the market’s concerns regarding traffic, growth prospects, reinvestment versus margin expansion and competition. The broker told clients that operating margin expansion may be limited in the near term as the company invests in international expansion. ” The broker went on to say that Deutsche Bank thinks brand advertising in the US might be a better investment than international expansion.
