ValueClick down after slashed forecast

The stock of the Westlake Village, Calif.-based company fell $2.76, or 20 percent, to close at $11.01.

ValueClick now expects revenue of $655 million to $675 million in fiscal 2008, down from a previous forecast of $730 million to $745 million.

It expects to earn 69 cents to 71 cents for the year, down from previous guidance of 81 cents to 83 cents.

Analyst Richard Fetyko at Merriman, Curhan, Ford & Co. said the guidance cut was "very significant, particularly in the Comparison Shopping segment."

That segment includes price comparison sites Pricerunner.com and Smarter.com.

"Lower consumer sentiment probably has had some impact on that segment, but we believe that structural and competitive issues are also at play," Fetyko wrote.

He rates the company at "Neutral," but notes that it could be in a "prolonged if not permanent downward spiral."

The stock hit a three-year low of $10.20 earlier in the session. It set a 52-week high of $31.49 a year ago.