OpenTable Stock Has Fallen Nearly 70% Since AprilDecember 9, 2011
Restaurant reservation service OpenTable Inc. has experienced nearly a 70% drop in shares since hitting a record high of $115.62 in April. In addition to a sluggish economy, analysts believe the decline is due to a sudden rise in competition, including the recent U.S. launch of Freebookings—a free reservation service from Europe’s Livebookings Ltd.—and Google’s purchase of Zagat Survey LLC in September. Since the company went public in May 2009, OpenTable shares are trading at 46 times earnings (a higher valuation than 96% of companies in the Standard & Poor’s 500 Index), according to Bloomberg. OpenTable currently claims to be the leading reservation provider in the U.S., with more than 20,000 restaurant subscribers.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.