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 web-property owner Demand Media
So what: Demand's first quarter came up aces. Revenue excluding traffic-acquisition costs was up 50% to $76 million on a 77% gain in content and media revenue. On a non-GAAP basis -- that is, excluding items such as stock-based compensation and amortization of intangibles -- Demand reported earnings per share of $0.06, which doubled last year's $0.03 tally. Analysts were looking for $0.04 in per-share profit on $69 million in revenue.
Now what: The results have to be somewhat of a relief to Demand shareholders, after worries that a search-algorithm overhaul by Google
When it comes to the investment prospects of Demand's stock, you can count this Fool among the naysayers. With an underwhelming business model and a lofty valuation, I think there are much better places for investors to look.
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Fool contributor Matt Koppenheffer has no financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or on his RSS feed. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.