Shares of Baltimore's Millennial Media Inc. on Wednesday lost nearly 38 percent of their value, closing at $8.95.
Fourth-quarter earnings announced Tuesday disappointed analysts and led to a sharp decline in after-hours trading. The stock closed Tuesday at $14.33 and opened Wednesday at $9.81.
The mobile device advertising company reported it had a profit of 3 cents per share — $2.6 million in all — in the quarter ending Dec. 31, falling short of expectations.
Projections for this year — the company said it expects revenue to range from $270 million to $280 million — also disappointed some analysts. Morgan Stanley downgraded the stock following the projection, according to news reports.
The company announced Wednesday that it plans to acquire Metaresolver, a private San Francisco-based firm that analyzes data to improve its clients' mobile ad buying results.
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