Why Rocket Fuel, Inc. Shares Roared Higher

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 Rocket Fuel, (NASDAQ: FUEL  )  jumped more than 13% Thursday after analysts at Needham upgraded the artificial intelligence advertising solutions stock from buy to strong buy, simultaneously assigning a $75 per share price target.

So what: Investors are right to be excited considering that the number represents a more than 30% premium to today's close, which settled just under $57 per share.

To explain the move, Needham's Kerry Rice noted the firm's channel checks remained positive across the entire advertising technology sector, and that they believe recent concerns revolving around the "future of cookies and an industry shift toward a self-service license model [are] overblown."

Rice also noted that part of Rocket Fuel's recent fall can be blamed on the poor performance of other ad tech plays, perhaps most notably, video advertising specialist Tremor Video, which fell 49% in a single day last month following its own disappointing third-quarter results.

Now what: Remember, however, that Rocket Fuel isn't expected to turn profitable until 2015. While the company seems to be doing a decent job growing its top line, at this point, with its efforts to grab market share, I think the uncertainties around its business model from a long-term perspective make this too risky a bet for my taste.

Try the nine solidly profitable stocks in this free report instead
While up-and-coming companies like Rocket Fuel strive for sustained profitability, other businesses already present lucrative -- and stable -- opportunities for patient investors. 

Dividend stocks can make you rich. It's as simple as that. While they don't garner the notoriety of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.

Read/Post Comments (0) | Recommend This Article (3)

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: 2772130, ~/Articles/ArticleHandler.aspx, 9/26/2016 8:31:19 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 18,094.83 -166.62 -0.91%
S&P 500 2,146.10 -18.59 -0.86%
NASD 5,257.49 -48.26 -0.91%

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

9/26/2016 4:00 PM
FUEL $2.72 Down -0.11 -3.89%
Rocket Fuel Inc. CAPS Rating: **