Why Marchex, Inc. Shares Marched Forward

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 advertising technologist Marchex  (NASDAQ: MCHX  ) soared 15% today after its quarterly results and outlook topped Wall Street expectations.

So what: The stock had pulled back sharply in recent weeks on concerns over slowing growth, but Marchex's strong Q1 results -- earnings per share of $0.05 topped the consensus by $0.01 on a revenue spike of 46% -- are quickly easing those worries. Additionally, management said it expects full-year, call-driven revenue of $171 million or more, giving analysts some decent visibility into upcoming quarters.

Now what: Don't expect the operating momentum to slow anytime soon. "With the rapid adoption of mobile, consumer phone calls are fast-becoming one of the most important outcomes of mobile ad campaigns," said Chairman and CEO Russell Horowitz. "Advertisers now want a better understanding of these over-the-phone interactions. Marchex is ideally positioned to meet this new and growing market, based on our early investment in our Call Analytics technology platform and pay-for-call marketplace." Of course, with the stock now up about 180% from its 52-week lows and trading at a 45-plus forward P/E, much of that potential might already be baked into the valuation. 

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Brian Pacampara

I take a look at big 10% moves, as well as stock-shaking analyst calls, on a daily basis for The Fool. While I don't believe in active trading, closely monitoring Mr. Market's mood swings can help identify long-term opportunities.

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Related Tickers

8/27/2015 4:00 PM
MCHX $3.85 Up +0.20 +5.48%
Marchex, Inc. CAPS Rating: **