Marchex Stock Tumbles on Downgrade

Direct navigation firm Marchex has been downgraded by JMP Securities analyst William Morrison.

Marchex (NASDAQ: MCHX) is the largest publicly traded direct navigation firm. The firm’s stock was downgraded by JMP Securities analyst William Morrison, who cited weaknesses in the firm’s direct navigation business. Morrison sees the weaknesses continuing through the first half of 2008.

This isn’t an indication that direct navigation as a business is weak, but more an indication of poor execution by Marchex. As one reader commented on my earlier story regarding Marchex’s trademark woes,

Poor execution below for shareholdersâ€¦

Sites they developed using Openlist are not even indexed in search engines yet. Not even sites from a number of months ago in the beta launch. Below are a number of sites not even in google. There are many more examples.

Just go to google and type in the name (www.XXXXXX). Nothing indexed. They may not be in other engines either. Not even myzip.com is in google, their “gatewayâ€ site to zip codes. This is poor execution and lost revenue opportunities. This is not rocket science. Being an investor, I may take a few minutes to submit them myselfâ€¦

www.myzip.com
www.restaurantonline.com
www.newyorkbagels.com
www.dimsum.net
www.chicagoluxuryhotels.com
www.shanghaihotel.com
www.bostonmotels.com

Marchex has a number of neglected assets, such as GoClick. It has the right assets but isn’t capitalizing on them effectively.

Also on the wire