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 enterprise collaborative software company Jive Software (Nasdaq: JIVE ) are jumping by as much as 12% today following speculation that one of its competitors will be bought out.
So what: Jive Software's rally can be attributed to feverish rumors from Bloomberg and Twitter that Microsoft (Nasdaq: MSFT ) might be interested in purchasing privately held Yammer. It would be an interesting move, as Microsoft's SharePoint is still the premium collaborative software in business. Other competitors in this space include salesforce.com (NYSE: CRM ) with its Chatter service and VMware (NYSE: VMW ) , which owns SocialCast, but neither of these two are seeing the pure-play move higher like Jive, as they have their fingers in so many other business segments.
Now what: I'd hesitate to believe the rumors of a possible Yammer buyout and stick to my investment thesis on Jive prior to hearing today's "news." Personally, I've maintained a CAPScall of underperform on Jive as expenses continue to outpace sales growth. Until I see that elusive profit, I really feel Jive has a lot to prove to investors.
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