AutoWeb, Inc. delivered operating results for the quarter ended December 31, 2017 that were grossly out of line with market expectations, leading to a drastic one-day decline in the price of its common stock followed by a continued selloff over the following weeks to a low of $2.88. Significantly increased spending on key search terms by AutoWeb’s competitors hampered revenue and compressed margins in its lead generation business, which was only partially offset by continued growth in its advertising businesses. Furthermore, both CEO Jeff Coats and CFO Kim Boren announced their departures from the company in early March 2018, which followed COO Bill Ferriolo’s unexpected departure from the company in mid-February 2018. Global Value Research Company (GVRC) believes that the setbacks recently experienced by AutoWeb are temporary, and little has changed from a fundamental standpoint. AutoWeb continues to present a compelling investment opportunity considering its historical valuations, especially at its current stock price. GVRC therefore reiterates its buy rating and target price of $16.00.