September 18, 2012
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 advertiser Velti (Nasdaq: VELT ) jumped today by as much as 16% after the company announced that it closed a major ad deal.
So what: Velti said it closed a $27 million deal that spans over two years for "a major U.S. brand." The advertising program will start within a matter of weeks and aims to boost engagement and loyalty within the brand's current customer base.
Now what: This is Velti's largest-ever mobile marketing deal, so it's no surprise that investors are jumping with joy. CEO Alex Moukas called it "emblematic of the significant traction" the company is seeing in the U.S. for its offerings that use data to drive engagement. For some context, last quarter saw total sales of $58.7 million, so this deal is certainly a big one.
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