Last week, the shares of RetailMeNot Inc. have declined by over 40%. The revenue projection of the Austin-based company for the third quarter has been reduced by 14%.
The losses on the shares of the digital coupon distributor can be traced back in May when Google implemented a new rule for its search algorithm. Google designed its new algorithm to exclude links with low quality.
According to the company’s in-house data analysis, their desktop visitors decreased by 25% during the second quarter. This data has significant impact on the company since over 70% of its revenue is from desktop users.
Read more about How Google’s tweaks caused RetailMeNot’s stock to plummet
