Please ensure Javascript is enabled for purposes of website accessibility

Why Jive Software Shares Popped

By Sean Williams – Updated Apr 7, 2017 at 3:48PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Is this meaningful, or just another movement?

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 enterprise collaborative software company Jive Software (Nasdaq: JIVE) are jumping by as much as 12% today following speculation that one of its competitors will be bought out.

So what: Jive Software's rally can be attributed to feverish rumors from Bloomberg and Twitter that Microsoft (Nasdaq: MSFT) might be interested in purchasing privately held Yammer. It would be an interesting move, as Microsoft's SharePoint is still the premium collaborative software in business. Other competitors in this space include (NYSE: CRM) with its Chatter service and VMware (NYSE: VMW), which owns SocialCast, but neither of these two are seeing the pure-play move higher like Jive, as they have their fingers in so many other business segments.

Now what: I'd hesitate to believe the rumors of a possible Yammer buyout and stick to my investment thesis on Jive prior to hearing today's "news." Personally, I've maintained a CAPScall of underperform on Jive as expenses continue to outpace sales growth. Until I see that elusive profit, I really feel Jive has a lot to prove to investors.

Craving more input? Start by adding Jive Software to your free and personalized watchlist so you can keep up with the latest news on the company.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.

The Motley Fool owns shares of Microsoft and Motley Fool newsletter services have recommended buying shares of Microsoft,, and VMware, as well as creating a bull call spread position in Microsoft, and a bear put spread position in Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Microsoft Corporation Stock Quote
Microsoft Corporation
$232.90 (-1.94%) $-4.60
Salesforce, Inc. Stock Quote
Salesforce, Inc.
$143.84 (-2.02%) $-2.97
VMware, Inc. Stock Quote
VMware, Inc.
$106.46 (-0.95%) $-1.02

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/02/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.