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Millennial Media Inc. (MM) Message Board

  • mikemint1 mikemint1 Jul 16, 2013 9:50 AM Flag

    3 Advertising Tech Stocks to Load Up On - The M Fool

    Independent mobile ad network

    Millennial Media has been public the longest at just over a year and the weak returns on this stock has been a primary reason for the negativity on the two that followed in this sector recently. This stock peaked around $28 on the first trading day and didn’t see a bottom until around $6 in April. For the first 12 months, the stock lost nearly 80% of the value from those initial trades.

    Similar to Tremor, the company continues to forecast growth in excess of 50%, but it hasn’t stopped the stocks from collapsing. A big issue with specifically Millennial has been some of the concerns around monetizing mobile, though as those have faded it hasn’t helped the stock.

    At a market cap of only $750 million, analysts forecast the stock as trading at less than 2 times 2014 revenues that will grow around 46%. The disconnect between the current valuation and the growth rate is one of the largest in the market. Typically a stock with those growth rates and the projection of being profitable would send the stock soaring towards multiples of at least 4 or 5 times projected revenues.

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