WebMD's (WBMD) share price declined based on lower revenues. This news affords an attractive entry point for a disruptive stock.
WebMD to Cut Costs
WebMD provides medical information online and it sources its revenue mainly from advertisements and sponsorships. The ad business is however at risk due to expiration of patents of several major brands of drugs this year. The advertising unit also has to comply with stricter rules of the Food and Drug Administration while battling with health-centric competitor websites like ShareCare.
Though revenues in the third quarter amounted to about $118 million, the resulting $885,000 quarterly loss brought the need to cut down on operating expenses. WebMD hopes that all the cost cutting measures will help cut down on expenses by about $45 million. Revenues are also much lower in the third quarter than they were same time last year when the company was making profits.
WebMD is
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