Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why YuMe, Inc. Shares Skyrocketed

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 digital video advertising specialist YuMe, Inc.  (NYSE: YUME  ) soared 32% today after its quarterly results and outlook topped Wall Street expectations.

So what: The stock has slumped since its IPO in early August, but YuMe's first report as a public company -- a third-quarter loss of just $0.03 per share on a revenue surge of 39% -- reignited optimism over its growth prospects going forward. In fact, the company's advertising customer count increased 45% from the year-ago period to 336, giving analysts some decent visibility into upcoming quarters.

Now what: Management now expects full-year adjusted EBITDA of $5 million-$8 million on revenue of $154.5 million-$157.5 million. "We announced new versions of our Audience-Aware SDK and Audience Insights for publishers as well as a new version of our Audience Amplifier for brand targeting today," said CEO Jayant Kadambi in a press release. "These enhanced versions of both the supply and demand-side of our platform allow TV brand advertisers to get reach and multi-screen frequency with a new measure of audience attentiveness so critical given today's fragmentation of consumer attention." When you couple today's big share-price bump with YuMe's still relatively unproven business model, however, I'd wait for a wider margin of safety before making a long-term bet on that tech talk.

Got iPad?
The new iPad Mini Retina might be hard to come by this quarter, given all the reports of supply constraints. Well, we're going to be sure to get a few -- and give them away! That's right: For the first time ever, The Motley Fool is hosting a contest where you can win a free iPad Mini Retina. All you have to do is tell us why you love The Motley Fool by clicking here! We'll pick the three most Foolish submissions to receive a free iPad Mini with Retina display.

See full terms and conditions by clicking here

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2726740, ~/Articles/ArticleHandler.aspx, 9/29/2016 3:17:28 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,188.96 -150.28 -0.82%
S&P 500 2,154.90 -16.47 -0.76%
NASD 5,281.07 -37.48 -0.70%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/29/2016 3:01 PM
YUME $3.99 Up +0.04 +1.01%
YuMe CAPS Rating: ***