Why VeriSign's Shares Popped Late Today

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 VeriSign (Nasdaq: VRSN  ) jumped 11% in late trading, after releasing a statement that it expected to keep the .com registry.

So what: The company is confident that government agencies, who are reviewing the company's agreement to run the .com registry, will allow the company to continue running it. A statement from the company said, "VeriSign expects to continue to run the .com registry."

Now what: This is an important revenue source for VeriSign, and the company's confidence is a good sign for the stock going forward. The government wanted to review the company's ability to potentially raise prices for companies that rely on .com sites around the country. I don't think this is a reason to buy, given the company's 40 P/E ratio, but it's a good sign, nonetheless.

Interested in more info on VeriSign? Add it to your watchlist by clicking here.

 

Fool contributor Travis Hoium has no positions in the stocks mentioned above. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his CAPS picks at TMFFlushDrawThe Motley Fool has no positions in the stocks mentioned above. 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 has a disclosure policy.


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