VELT taking the lead in mobile ad market, MM falling behind as VELT gets more aggressive
VELT taking the lead in mobile ad market, MM falling behind as VELT gets more aggressive. Just see the press release of VELT yesterday that will go after GOOG & MM by its new most comprehensive mobile ads exchange launch Velti Media imho
Velti's 4thQ performance missed forecasted estimates badly. For the current year, the company also forecast revenues way below estimates. It has also been reported that the company may have "going concern" issues since there are liquidity issues relating to possible violations of its debt covenants. The company is also dealing with a dwindling cash position to meet its debt obligations. The company's stock is now at $1.87, pennies above its 52-week low. If the company's prospects are so good, one would think that this would be reflected in its stock price. If Velti is the leader in the mobile advertising market, then it is a very weak and vulnerable leader.
Not sure who's bringing whom down but for now it appears like both MM & VELT to blame for their stock declines. Going forward may be VELT may be to blame for MM stock drop as Velti takes away marketshare.