Why Bazaarvoice Inc. Shares Popped 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 Bazaarvoice (NASDAQ: BV  ) jumped more than 13% Thursday after the company announced mixed fiscal fourth-quarter results and an agreement to divest its PowerReviews business.

So what: Bazaarvoice's quarterly revenue rose 11% year-over-year to in at $47.1 million -- including sales from PowerReviews -- which translated to an adjusted net loss of $8.4 million, or $0.11 per share. Analysts, on average, were modeling a slightly narrower loss of $0.10 per share on lower sales of $45.45 million.

Investors appear more pleased, though, with Bazaarvoice's agreement to divest PowerReviews for $30 million in cash to Viewpoints subsidiary Wavetable Labs. Remember, in March Bazaarvoice CEO Gene Austin stated several interested buyers for the divestiture, which is the result of a previously announced U.S. court decision that Bazaarvoice violated U.S. antitrust law with its acquisition of the company. 

Now what: Putting aside lost time and litigation costs, Bazaarvoice didn't do too badly considering it paid just $31 million for PowerReviews in June, 2012. However, I'm still not particularly intrigued by Bazaarvoice given its already sluggish top-line growth and lack of profitability. For now, I'm content watching this one from the sidelines.

Top dividend stocks for the next decade
After all, the smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.


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

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.

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: 2984533, ~/Articles/ArticleHandler.aspx, 9/20/2014 4:22:05 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...


Advertisement