Moddy’s Corporation (MCO), Youku Tudou Inc (YOKU) and OCZ Technology Group Inc. (OCZ) Have Bigger Problems Than Europe’s Woes

In September, OCZ had forecast a revenue range between $110 million and $120 million, which itself was down from its original guidance of $130 million to $140 million, but then it updated that outlook again a month later to say, on second thought, make that “materially lower” than the guidance we just gave you. Even so, the company’s hedged its bets yet again by saying these guesses “are subject to further review.”

The bid to gain share against Seagate Technology PLC (NASDAQ:STX) and Western Digital Corp. (NASDAQ:WDC) went awry, and it lost control of customer rebate programs. That led to massive losses and caused its founder and CEO to abruptly resign. Investors keep pinning their hopes on Seagate stepping in to offer a buyout, and that may ultimately be OCZ’s only salvation.

Game over
Almost two month’s ago, China’s YouTube was the toast of the town, feted by analysts who saw Youku’s $1.1 billion acquisition of Tudou finally paying off. They raised price targets and had rosy predictions of the synergies it would realize. I was a bit more circumspect and doubted it would play out as the analysts imagined because while the merger gave it a good lead over its main rival Sohu.com Inc. (NASDAQ:SOHU) , such large acquisitions rarely work out as planned. I felt Youku would eventually give back its gains.

Its stock did continue to climb in the weeks afterward, but it seems the turning point has been reached. Analysts now say the profitability they hoped for this year might not come now until 2014 since revenue is growing only 20% while expenses are soaring 50%. Sohu is also facing a diminished future, forecasting earnings of $0.55 for the first quarter when Wall Street was looking for $0.77.

The article These 3 Stocks Have Bigger Problems Than Europe’s Woes originally appeared on Fool.com and is written by Rich Duprey.

Fool contributor Rich Duprey owns shares of Seagate Technology. The Motley Fool recommends Goldman Sachs, Moody’s, and Sohu.com. The Motley Fool owns shares of McGraw-Hill and Western Digital.

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