Out Fox The $treet

Verizon is slowly building up a mobile-ad service. The go90 mobile service offers a glimpse of the future though providing limited impact to current financials. The wireless provider continues to pivot toward the future while providing investors a 5% yield to enjoy in the mean time. Though the AOL deal didn't originally appear to offer much value to a wireless behemoth like Verizon Communications (NYSE: VZ ), considering its lack of growth and small size, some opportunties emerged that made the service all additive. In a similar manner, the purchase of Millennial Media (NYSE: MM ) for a meager $248 million doesn't appear to offer anything meaningful to a company worth over $180 billion. Read the full article on Seeking Alpha. Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Last week, both Rocket Fuel ( NASDAQ: FUEL     ) and Millennial Media ( NYSE: MM     ) confirmed that the fourth quarter was a strong period for programmatic digital ads. While Millennial Media suggested the automotive sector might have pulled some revenue forward to the fourth quarter from the start of 2014, the general indication is that digital ads will increasingly move to programmatic platforms due to growing complexity. Read the full article here. Disclosure: Long FUEL and MM. Please review the disclaimer page for more details. 

After the announcement of the acquisition of Jumptap back in early August, Millennial Media ( NYSE: MM     ) plunged. The independent leader in mobile advertising was unable to satisfy analysts concerned about organic growth, but should that matter to an investor? The primary reason for the purchase of Jumptap is that the company supposedly spent the last few years building a mobile platform the exact opposite of Millennial Media. In fact, Jumptap focused on a programmatic buying network that recently fueled the strong IPO of Rocket Fuel ( NASDAQ: FUEL     ) . With programmatic buying seeing such strong growth, should investors care whether the growth was bought or built? Read the full article here . Disclosure: Long MM and FUEL. Please review the disclaimer page for more details. 

Small-Cap Insight  Even after a very successful IPO in the ad tech sector in Rocket Fuel ( FUEL ) , the rest of the sector continues to languish below original IPO price ranges. This includes a wide variety of stocks from mobile to video ad networks and now a revenue acquisition management (RAM) leader. In the case of Marin Software ( MRIN ) , the company might fit better in the Software-as-a-service (SAAS) category, though it definitely trades like an ad tech stock. Marin Software provides a leading RAM platform used by advertisers and agencies to manage more than $5 billion in annualized ad spend. The platform allows advertisers to measure, manage, and optimize their digital advertising investments across search, display, social, and mobile channels. Basically it allows marketers to execute the full spectrum of ad spend within one platform that eliminates the complexities of the digital ad world and saves the advertiser time and improves the ad effectiveness. Th...

Another quarterly report and another major sell-off of Millennial Media ( MM ) . Investors not reading the report would probably suspect that the leading independent mobile advertising company released earnings that didn't meet estimates. The nearly 19% loss on top of an 8% loss on the day earnings were released undoubtedly must have been due to extremely negative numbers. The sell-off was actually caused by a couple of factors, including the surprise merger of the second leading independent mobile ad network and revenue numbers that missed estimates. Considering the general weakness in the sector, it actually doesn't take much to send ad technology stocks down these days. Read the full article at Seeking Alpha. Disclosure: Long MM. Please read the disclaimer page for more details. 

The below infographic from Teradata (TDC) highlights why Stone Fox Capital has become increasingly bullish on ad-tech firms thought the results have been negative so far. The data-driven suggests that CMOs will outspend CIOs by 2017. Encouraging signs for firms such as Millennial Media (MM) , Tremor Video (TRMR) and even Marin Software (MRIN) . All of these firms will benefit from an increasing shift of advertising dollars to digital mediums where marketing analytic will be increasing important. Read more from Teredata here . Disclosure: Long MM and TRMR. Please review the disclaimer page for more details. 

Small Cap Insight Any time a stock falls 50% shortly after an IPO one has to wonder if the market isn't offering a bargain now. Currently the IPO process is so subjective to market forces and short-term market momentum that a stock can move 50% in either direction irrationally. Typically the process of deriving the offering price is built for obtaining a reasonable price though it usually leaves money on the table for those buying at that price. In the case of Marin Software ( MRIN ) , investors at the IPO price haven't seen much to smile about as the stock peaked at nearly $20 on the opening day and has done nothing but drop to $10 in the three months that it has been public. Read the full article at Seeking Alpha. Disclosure: Long MM. Please review the disclaimer page for more details. 

As the Federal Reserve hints at tapering the bond buying program over the next year, cyclical stocks including technology should become interesting buys. Tech stocks have underperformed the market rally over the last year as investors have piled into high yielding stocks as bond yields hit extremely low levels. Now that money should flood out of those stocks and bonds into growth stocks. The main reason the Fed would stop more » Disclosure: Long INVN and MM. Please review the disclaimer page for more details. 

After snatching up Tumblr and now on the prowl for Hulu, Yahoo (NASDAQ: YHOO ) should instead buy some established growth companies. At the end of last year, Yahoo suddenly became cash rich after cashing out of a large investment in Alibaba. The company is now using the cash to buy well-known growing brands, but will it work? Yahoo is following in the footsteps of the Facebook purchase of Instagram for more » Disclosure: Long MM. Please review the disclaimer page for more details. 

Great discussion on mobile advertising. Long video but worth watching if your interested in the mobile ad sector such as Google (GOOG) and  Millennial Media (MM) . For those paying attention, Millennial Media trades near all time lows yet there the ones involved in a discussion with Google. Disclosure: Long MM. Please review the disclaimer page for more details. 

Anybody following previous articles on Nuance Communications, Inc. ( NUAN ) knows that the company and stock have been incredibly appealing, yet the scenario never existed to load up on the stock. The company has had a decent growth profile and it has compelling technology, yet the combination hasn't lead to stock returns over the last 18 months due an over reliance on mergers and the accumulation of debt. The company is a leading provider of voice and language solutions for businesses and consumers around the world. Its technologies, applications, and services make the user experience more compelling by transforming the way people interact with devices and systems. Nuance is famous for being the technology behind the Siri product used by Apple ( AAPL ) , which recently hit 52-week lows. Ironically within the same day reports of two potential catalysts hit the wires that could push the stock higher. Read the full article at Seeking Alpha. Disclosure: Long A...

Back in August of last year, Stone Fox Capital wrote about the continuous decline of Zipcar's stock. The stock had traded down to $6 in a steady and unrelenting decline since going public around $30 back in 2011. The stock had become so punished that it wasn't long before Avis Budget Group ( CAR ) came knocking with a $12.25 per share offer in cash that gave bottom feeder investors huge gains. The latest action in Millennial Media ( MM ) is starting to replicate the action of Zipcar. First and foremost, Millennial Media traded at the highs out of the gate and followed the path of Zipcar with non-stop declines. It's debatable which stock had the worst chart. Second, the investment concepts remained intact despite the precipitous declines. Investors feared higher competition and delayed profits in pushing the stocks to incredible lows, yet the thesis of car sharing and mobile advertising both remain strong. Read the full article at Seeking Alpha. Disclos...

Typically when the RSI hits a figure below 30 the stock is oversold. When that number creeps below 27, the stock is reaching the significantly oversold position. Not many stock go lower than 24 other than complete destruction of the stock. Millennial Media (MM) is trading around 26 on the RSI as the stock plunges further to nearly $7 today from $8 on Friday. Remember the stock was trading over $14 prior to earnings. Incredible to see this much destruction with revenue growing 55% this year. Traders clearly do not believe the updated guidance. The fear is that Google (GOOG) is and will eat their lunch. The stock action is amazing because logically Yahoo (YHOO) should want the independent mobile ad network to compete against Google and Apple (AAPL) . Just don't see Google dominating the mobile display sector without a player like Millennial competing with it. The chart though tells a different story. See below: Investors will be wise to buy this stock as it settles out....

The independent mobile advertising sector just can't shoot straight or at least thats the opinion of the stock market. Largest independent mobile ad network provider Millennial Media (MM) broke down to new all time lows today. The stock now fetches a market cap of below $600M while supporting huge growth. The company did disappoint in Q412 (see Millennial Media: When 68% Growth Isn't Enough ), but one has to wonder if the punishment fits the crime. The CEO doesn't do the greatest job of explaining the situation on the Mad Money show back after the earnings report, but investors selling this stock off to new lows should take time to review it. Clearly the company needs to do a better job of containing expectations so that 68% growth isn't seen as a negative. The stock now trades at less than 1.5x forward revenue estimates. All other stocks with these growth rates trade in the 10x multiples. The CEO was clear that Google (GOOG) isn't stealing sha...

Demand for software companies that cater to business clients remains strong, but not enough workdays exist in a year to make Workday (NYSE: WDAY ) attractive at current market multiples. The company went public in mid-October at highly unappealing multiples that left limited upside ever since. The provider of enterprise cloud-based applications for customers to manage critical business functions trades at around 25 times fiscal year 2014 (ending January 2014) revenue more » Disclosure: Long MM. Please review the disclaimer page for more details. 

After the close on Tuesday, Millennial Media ( MM ) reported Q4 2012 earnings that greatly disappointed the market due to substantially lower revenue than expected. While the company reported earnings in line with expectations based on solid margins, it failed to predict the shortfall in several large brand deals sending the stock down over 25% in after-hours. The company is the leading independent mobile ad network provider. Its technology, tools, and services help developers maximize their advertising revenue, acquire users for their apps, and gain insight about their users. The company has a platform that enables advertisers powerful Mobile Audience Solutions (MAS) that use the significant scale, sophisticated targeting and uniquely engaging creative capabilities to deliver meaningful results. The article (see Buy Millennial Media Prior To Q4 Earnings ) had suggested buying the stock prior to this earnings release as all data pointed towards huge numbers. Even ...

Millennial Media ( MM ) remains the leading independent mobile advertising network with a market share behind Google ( GOOG ) . The company had one of the hottest IPOs in 2012 yet the stock fizzled from day one. As the mobile advertising market heats up should this stock trade near the lows? The company is the leading independent mobile ad network provider. Its technology, tools, and services help developers maximize their advertising revenue, acquire users for their apps, and gain insight about their users. The company has a platform that enables advertisers powerful Mobile Audience Solutions (MAS) that utilize the significant scale, sophisticated targeting and uniquely engaging creative capabilities to deliver meaningful results. The company reports earnings on the 19th and investors should consider entering the stock prior to the release as mobile advertising heats up. Read the full article at Seeking Alpha. Disclosure: Long VELT. Please review the disclaimer ...

This article is the fourth in a monthly series to analyze the stocks at the forefront of the monetization of the trend towards mobile data traffic. The original mobile monetization index highlighted the leading public companies and defined the concept. Market Data The expectations for the monetization of mobile traffic increased dramatically in December following the nice surprise when Facebook (FB) reported very strong mobile revenue back in October. Analysts continue to become more bullish on the concept. Read the full article at Seeking Alpha. Disclosure: Long AAPL, GLUU, and VELT. Please review the disclaimer page for more details. 

Demand for software companies that cater to business clients remains strong, but not enough workdays exist in a year to make Workday  (NYSE: WDAY ) attractive at current market multiples. The company went public in mid-October at highly unappealing multiples that leave limited upside for the retail investor buying now. The provider of enterprise cloud-based applications for customers to manage critical business functions trades at around 20x 2013 revenue targets. A more » Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

With the market typically favoring dividend stocks over growth stocks, Splunk Inc. (SPLK) remains a conundrum trading at roughly 12x forward revenue estimates. While the company has huge growth potential, analysts only expect 35% growth next year that wouldn't normally warrant such a high valuation. The company provides a leading software platform for real-time operational intelligence. In essence, the company is leading the "Big Data" revolution by offering software tools for analyzing the incredible amount of data created on a daily basis. Back in the summer, the valuation didn't support the growth rate. After a sell-off in October, does the stock finally offer a good value? Read the full article at Seeking Alpha. Disclosure: Long INVN. Please review the disclaimer page for more details.