The The Knot, Inc ( NASDAQ:KNOT) stock price jumped on the news they had beaten expectations yesterday. The news led to an upgrade from neutral to buy and was cause for celebration at a time when the wedding business has little to cheer.
Shares of the Knot were up nearly 7% in late day trading (8.30) on the positive earning news, despite a record 1000 point decline yesterday. The market rebounded to end 350 points lower for the day but had another rollercoaster ride on Friday.
Sources in the wedding business unfamiliar with stock prices say they don’t care about the Knot’s stock value. “Obviously it has nothing to do with us and what we need from them does it?” said ex-advertisers that are finding other places to spend their dollars. Some told eWedNews they found the Knot earnings mysterious. “Everyone I’ve spoken with since joining the Knot says they’re shifting advertising dollars away from them; so how can their earnings be up? Are they getting paid by brides now?” said one ex-advertiser source.
The Knot did not return a request to comment on the topic after telling us they would not comment until after the report was made public yesterday. Efforts to gather a statement and speak to the Knot remain ongoing.
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Posted on 05/07/2010
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