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1-Star Stocks Poised to Plunge: MeetMe?

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, social network platform operator MeetMe (NYSEMKT: MEET  ) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at MeetMe and see what CAPS investors are saying about the stock right now.

MeetMe facts

Headquarters (founded)

New Hope, Pa. (1997)

Market Cap

$148.4 million

Industry

Internet software and services

Trailing-12-Month Revenue

$31.4 million

Management

Chairman/CEO John Abbott
CFO Michael Matte

Trailing-12-Month Return on Equity

(24.5%)

Cash/Debt

$5.9 million / $11.9 million

Competitors

AOL (NYSE: AOL  )
Facebook (Nasdaq: FB  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 52% of the 155 members who have rated MeetMe believe the stock will underperform the S&P 500 going forward.

Just last week, one of those Fools, AygHead, succinctly summed up the MeetMe bear case for our community:

This stock is surging because of speculation that this will be the next [Facebook]. In the meantime, it is burning cash at an extremely fast rate and is not profitable. Facebook will surely be pulling market share from these guys, or will buy them. No need for two players in the unimportant "post my pictures and tell my friends what [I'm] doing online to pass time" business.

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Read/Post Comments (4) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On November 08, 2012, at 9:41 PM, RENGACORP wrote:

    Blue Horseshoe loves MEET.

  • Report this Comment On November 08, 2012, at 10:03 PM, RENGACORP wrote:

    I signed up to Meetme.com and am very impressed with the architecture, especially the freedom of near-total profile customization, including allowance for animted GIFs in background fields. They seem more like what facebook was originally designed to do, get people dates. Facebook has become a place to share our art, catch up with friends and self-promote. Also, Mobile is taking off worldwide and the stock price has just been greatly discounted as it came back to touch both the 200 day and the 50 day SMA. Any chartist worth his/her salt would admit it's a perfect time for accumulation.

  • Report this Comment On November 08, 2012, at 10:40 PM, RENGACORP wrote:

    The #1 stock picker here has more than a handful of one-star rated picks that are soaring.

  • Report this Comment On November 10, 2012, at 7:29 AM, innpact wrote:

    How can you even consider this an article when you clearly do not even know what this company is about. The goal of this company is to be the opposite of Facebook. It is all about Meeting NEW people. Do you even know what Social Discovery is?

    Have you looked at the numbers this company is putting out?

    My respect for Fool articles had been diminished a long time ago, but after this article it is now clear that this is the Faux News of finance.

    MAU up 24%

    Registrations up 80%

    International MAU up 147%

    Andriod App Broke into top 50 in Brazil, Mexico and Spain

    Launching a subscription based platform and two freemium services

    New Feed Advertising Rollout in Q1

    3 new languages in Q4

    7 more in Q1

    Non- Affiliated Revenues up 1.5 Million. WITHOUT MATT!

    Mobile Revenue up 72% Q2 - Q3

    Cross Platform Revenue. Pay attention. Without MATT up from 1.2M to 2.6M. This is social Theater folks kicking it in the #$%$. Up 116% without MATT!

    Total Cash and A/R 20.4M with 5M cash

    Average Mobile DAU from 605k to 678k Q over Q

    Total MAU Q over Q 3.18M to 3.94M

    Total Mobile MAU Q over Q 1.67M to 1.95M

    Registered Users Q over Q 85M to 89M

    Visits Q over Q 338M to 384M

    Page Views Q over Q 9.8B to 10.9B

    Mobile Registrations Q over Q 3.65 to 4.99M

    Mobile Average Revenue per user Q over Q .80 to .91

    So tell me again how Facebook is eating up their market share.

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Related Tickers

6/19/2013 1:06 PM
MEET $1.35 Down -0.01 -0.74%
MeetMe, Inc. CAPS Rating: *
FB $24.40 Up +0.19 +0.79%
Facebook CAPS Rating: **
AOL $36.99 Up +0.23 +0.63%
AOL CAPS Rating: *

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