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.
So what: Under the new deal, Yahoo!'s search engine will be protected by AVG's Secure Search, which will scan links for malware and other viruses. Having a partnership already in place with Yahoo! prior to today's announcement made an expansion of the two companies' working relationship even easier.
Now what: AVG is very quietly building a portfolio full of top-notch clientele. It's set up a partnership with Google (NASDAQ: GOOGL ) over the past few months and now it's expanded its partnership with Yahoo! even further. As I stated shortly after AVG's debut earlier this year, I really favor the company's "freemium" software model for at-home Internet users and valuation relative to its potential. Competitors like Symantec (NASDAQ: SYMC ) (which I think is a solid investment, as well) rely on OEM contracts to generate much of their revenue whereas AVG is beginning to focus on bigger clientele and cloud-based applications to move its software into the forefront. I believe AVG could head much higher over the long run.
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