Why Criteo Stock Pulled Back on Wednesday
Shares of advertising-technology company Criteo (NASDAQ: CRTO) pulled back on Wednesday after the company reported results for the third quarter of 2020. Top- and bottom-line results were ahead of expectations but were still sharply down year over year. Furthermore, guidance for the fourth quarter indicates the company will continue to be growth challenged, and investors didn't seem to like that. As of 3 p.m. EDT, Criteo stock was down less than 1% but it had been down as much as 10% earlier in the day.
For Q3, Criteo's revenue fell 10% year over year. Management estimates the COVID-19 pandemic cost the company $80 million in revenue. Assuming that's true, revenue would have been up 5% from the the third quarter of 2019. But the drop in revenue was costly. Net income was just $5 million -- down $16 million from last year. Management attributed $12 million of this to restructuring costs.
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Source Fool.com
