Demand Media’s Stock Drops On Google’s Changes — But Then Bounces Back

Updated: Demand Media (NYSE: DMD) says Google’s move Thursday to reduce the rankings of low-quality sites hasn’t had a “material net impact” on its business — at least yet — and investors don’t seem to believe it will. After sending Demand Media’s shares down as much as 5 percent on the Nasdaq, the stock ended the day up 1.5 percent to close at $22.96.

That’s well above the $17 Demand Media’s stock first traded at when it went public in late January, and down slightly from the $23.38 high it reached earlier this week when the company reported its first earnings as a public company.

Here’s the chart: