Perion Plummets 41% on Monday Trading

In a tumultuous turn of events, Perion Network's U.S.-listed shares nosedived by over 40% on Monday following the company's stark reduction in its 2024 revenue forecast. The Israeli ad tech firm attributed this downward revision to a significant decline in search advertising, primarily driven by transformative changes at Microsoft's Bing platform.

Perion Network ( PERI ), which had previously anticipated annual revenue in the robust range of $860 million to $880 million for 2024, now anticipates a starkly reduced figure between $590 million to $610 million. This substantial downgrade underscores the profound impact of shifts in search advertising dynamics, particularly stemming from alterations in ad pricing and distribution mechanisms implemented by Microsoft Bing.

Eric Martinuzzi, an analyst at Lake Street Capital Markets, highlighted the inherent risk associated with Perion's revenue concentration on Microsoft, noting that changes in Microsoft's advertising policies have triggered the drastic reset in Perion's revenue outlook. With Microsoft accounting for 35% of its revenue in 2022, the repercussions of the tech giant's strategic shifts reverberate throughout Perion's financial landscape.

The fallout from Perion's revised revenue forecast reverberated across the market, with the company's stock plummeting by $13.30 in early trading. Year-to-date, Perion's shares have tumbled by approximately 32%, grappling with intensified competition from industry behemoths such as Alphabet's Google and Meta Platforms, parent company of Facebook.

Despite the daunting challenges posed by evolving market dynamics, Perion remains steadfast in its commitment to navigate these turbulent waters. The company is slated to unveil its first-quarter results on May 8, providing investors with crucial insights into its ongoing efforts to mitigate the impact of Microsoft Bing's transformative changes on its revenue streams.

As the ad tech industry braces for continued disruption amidst the evolving search advertising landscape, Perion's resilience and adaptability will be put to the test. With uncertainty looming, stakeholders keenly await Perion's strategic response to navigate the shifting sands of the digital advertising realm and emerge stronger in the face of adversity.

Technical Outlook
PERI 's stock is in a Downward Trend with the stock's Relative Strength Index (RSI) at 9.88 indicating a very strong overbought condition for the ticker.