RetailMeNot (SALE) Lower as Article Calls Value into Question

RetailMeNot, Inc. (Nasdaq: SALE) is lower Monday following a negative report from the WSJ on Sunday.

The company makes a majority of its revenue on "last-click attribution" with e-commerce affiliates. That is, the company will get paid if a purchase is completed on the retailer's website after being on RetailMeNot's website.

The WSJ notes that RetailMeNot's position is precarious; retailers could be adopting more sophisticated attribution metrics, while the site as a whole is subject to search algorithm adjustments from Google.

Shares of RetailMeNot fell in late May after Google began rolling out its latest algo. In addition, the company's search-engine optimization visibility fell 48 percent between May 18th and 25th.

Other data shows that shoppers had already been on a retailer's website for 30 minutes before visiting RetailMeNot. That indicates that people know where they want to shop, but are looking even further for deals versus purchasing goods at regular prices. Retailers might move to cut out the middleman -- and commissions-- in a move to bolster bottom lines, though coupons play an important part in ebbing shopping-cart abandonment, or shoppers clicking away from the site once they see what the total cost will be.

Shares of RetailMeNot are down 5.8 percent.

You May Also Be Interested In

• Regenxbio shares jump after FDA agrees to reverse drug rejection
• Tesla Crash Into Texas Home Now Under Federal Safety Probe - WSJ
• Lockheed, RTX, Boeing, L3Harris expected to meet with Trump - WSJ