MyPoints (Nasdaq: MYPT) fell 2 3/8 to 7 5/8 Friday following reports that Merrill Lynch analysts warned that the company’s results may be hurt by softness in the online advertising business.
The San Francisco, California-based company operates a customer loyalty marketing network. Other companies in the Internet advertising and marketing sector have warned of profit shortfalls for the current quarter, saying that customers are cutting back on Internet spending.
On Monday, MyPoints said it will buy back up to $20 million of common stock. “In light of MyPoints.com’s financial strength, we believe this plan is a prudent and responsible use of available cash that will enhance shareholder value,” said Chairman and Chief Executive Officer Steve Markowitz.