I am seeing Velti go down and down and it seems as though there is a significant chance of bankruptcy..if velt goes bankrupt that means the $275 Million velt expected to make would most likely be spent somewhere else. Obviously some of that money won't get spent as maybe some customers were loyal to VELT. But lets say only $200 million will be spent elsewhere I feel as though MM should be able to #$%$ some of that business for some simple reasons:
1) anyone doing business with velti clearly prefers a small mobile ad company (like velt and MM) to a company like AAPL, FB, or GOOG, and therefore could possibly look to spend that money with MM.
1A) This is goes hand in hand with #1- but the reason WHY companies choose to spend with ad companies like VELT and MM is bc they have the ability to reach more customers. with AAPL u can only reach people on apple products, same goes for FB, and GOOG.
It seems like the market is thinking since velt is going down could MM be next as opposed to since velt is going down maybe MM can grab that business. And I think once MM proves it can be profitable (its already cash flow positive) we will see this stock soar. Just my two cents any thoughts?
I don't think MM's pullback is related to VELT. Financials are drastically different. I don't think the market is lumping the two together. MM is debt free and going to become profitable this year and all of 2014 per CEO. MM just reached its highest price recently of $9.54 since coming off the bottom from $5.87. A pullback and consolidation is completely natural and expected. It has performed this way since its rise from $5.87 and many have bought and sold low only to see MM regroup and rise while they screamed it was going back to $6, then $7, then $8, now $9 and going forward it's still VERY undervalued at this price. This industry is YOUNG. MM became #2 globally while those on the sidelines and shorts hoped it would fail...well MM is GROWING in the face of Apple, FB, and google.