[credit provider=” The Italian Village” url=”http://www.italianvillage-chicago.com/”]
Restaurant reservation service OpenTable has been one of the hottest Internet stocks of the last year, rocketing more than 400% since beginning its rise in January 2010.But today shares are off more than 15% — 8% during the day and another 7%+ after hours.
The company’s revenue and earnings, reported after market close, were slightly ahead of expectations, but as Citi’s Mark Maheny pointed out when he downgraded the stock in March, the company was trading at a crazy multiple so had to show a blowout quarter to justify its price.
The company also announced a leadership change — CFO Matt Roberts will become CEO, while current CEO Jeffrey Jordan will move to Executive Chairman.
Even with the drop, the stock is back to where it was in March, right before Maheny changed his rating.