What's happening: Shares of TubeMogul (NASDAQ:TUBE) jumped as much as 10.7% higher on Tuesday. The digital video advertising specialist bounced back from a brutal Monday session, wherein TubeMogul stock closed 7.1% lower after having crashed as much as 14.8% in intra-day action. By 2:20 p.m. Tuesday, TubeMogul stock was up 6.9% from Monday's closing price.
Why it's happening: The radical Monday drop wasn't just a side effect from that day's worries about the Chinese market. Analyst firm First Analysis had also just released a research note on TubeMogul, maintaining an "overweight" rating on the stock but lowering the price target from $21 to $17 per share. The firm didn't offer any detailed reasoning to back up the new rating, but TubeMogul recently boosted its share count. That secondary stock offering put $58 million of new cash in the company's coffers, but diluted the stock by 13%.
Sure, both of First Analysis' prices are far above TubeMogul's current price -- the stock hasn't touched $17 per share since June -- but it's still a negative analyst note with the power to color the market action.
Meanwhile, analyst house Oppenheimer had suggested pouncing on TubeMogul's low prices, calling the stock a top "pullback" opportunity. Oppenheimer sees a global "shift into programmatic video," and TubeMogul is a leader in that space. Like the negative tenor of the First Analysis note pulled TubeMogul's shares down, the Oppenheimer riposte had the opposite effect.
So the day after setting a fresh 52-week low, TubeMogul roared back with a massive jump. The stock still trades 55% below the 52-week highs it set last December, and the young company is still struggling to reach predictably positive earnings. But sales soared 58% higher year over year in the recently reported second quarter.