Analyst Craig A. Huber of Barclays Capital has forecasted that Monster Worldwide revenue will be down more than 37 percent next year and up only 4.2 percent in 2010.
Shares grinded almost grinded to a halt after the analyst’s predictions.
“Overall, we think Monster’s business model is solid and should continue to benefit as more help wanted advertisements migrate online from hard copy newspapers,” he said. “[But] with no end in sight to the credit crunch and economic downturn, we do not think it is prudent to base an investment in Monster on the global economy rebounding in 2009.”
Huber said that over a thousand job postings sites are available to companies in the U.S. with low barriers to entry, and that in the coming years Monster clients will find themselves reducing the size of their contracts or eliminating ads.
After the prediction, shares fell $1.06, or 9 percent, to $10.78 in afternoon trading.
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December 12th, 2008 at 4:30 pm
Monster never gives me the hires I need. THis doesn’t shock me at all. We got double what we were getting yearly with Monster with a 2 month trial of CareerBuilder.
December 15th, 2008 at 3:22 pm
I think Monster should ask Congress for a bailout.