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Synchronoss Shares Popped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of mobile data management expert Synchronoss Technologies (Nasdaq: SNCR  ) jumped as much as 24.5% this morning on tremendously heavy volume.

So what: Last night's second-quarter report just edged out analyst estimates, with 40% earnings growth on 49% higher non-GAAP revenues, but then management also raised its full-year guidance on both the top and bottom lines. The stock has now gained 82% in the last year and tripled over two years.

Now what: Synchronoss shares are crushing rivals CSG Systems (Nasdaq: CSGS  ) , Amdocs (NYSE: DOX  ) , and NeuStar (NYSE: NSR  ) with impunity, and it's all thanks to rampant revenue growth. The company has recently expanded its relationship with Verizon (NYSE: VZ  ) , AT&T (NYSE: T  ) , and Vodafone (NYSE: VOD  ) , which should keep those sales gushing for the foreseeable future. Mind you, the stock trades for a nosebleed-inducing 400 times trailing earnings, so owning Synchronoss shares might not be good for your heartburn.

Interested in more info on Synchronoss? Add it to your watchlist.

Fool contributor Anders Bylund holds no position in any of the companies discussed here. Motley Fool newsletter services have recommended buying shares of Vodafone Group and AT&T. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is investors writing for investors.


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  • Report this Comment On August 02, 2011, at 3:59 PM, NK123456 wrote:

    as some one who deals with these compnies on daily basis. SNCR is the only one who understand problem and provide meaningful solution. SNCR has no real competitor amdocs, nsr & csg are jokes... SNCR should be a 90-100$ stock in year. In short run its going to 60$ easy.

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Related Tickers

6/17/2013 4:00 PM
SNCR $32.04 Up +0.47 +1.49%
Synchronoss Techno… CAPS Rating: *****
T $35.76 Down -0.15 -0.42%
AT&T CAPS Rating: ***
VZ $50.71 Down -0.36 -0.70%
Verizon Communicat… CAPS Rating: ****
NSR $49.73 Up +0.88 +1.80%
NeuStar, Inc. CAPS Rating: ****
CSGS $21.61 Up +0.22 +1.03%
CSG Systems Intern… CAPS Rating: ***
DOX $36.24 Up +0.62 +1.74%
Amdocs Limited CAPS Rating: ****

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