TiVo shares drop 15%
TiVo shares fell 15 percent today on Wednesday's news that the company would no longer provide guidance on subscriber growth numbers. This despite TiVo's simultaneous report that it was profitable for the first time in its seven years.
Shares fell 94 cents to $5.18. The 52-week range is $3.45 to $7.75.
Investors are obviously concerned that TiVo may be burning through some serious cash in its efforts to aggressively chase new subscribers, which reportedly now cost the company $200 each to obtain. There's also continuing concern with DirecTV's plan to stop marketing TiVo to customers sometime later this year. With all of this uncertainty over the company's future, TiVo said it's abandoning its goal of reaching "sustainable" profitability by the fourth quarter.
