Out Fox The $treet

Summary Marin forecasts exceeding Q2 guidance, and the sales chief departs. Revenue growth confirms original investment thesis. Marin should continue growing at a solid clip due to the increasing complexity of managing digital ad spend. After the close, Marin Software ( MRIN ) announced that Q2 '14 revenue would reach $23.6 million. In addition, the company reported that the Chief Revenue Officer or more specifically the leader of the sales organization was departing the company. The news appears somewhat mixed for the SaaS company that provides a revenue acquisition platform for advertisers and agencies. The stock continues to trade virtually flat since my initial recommendation last October. Read the full update at Seeking Alpha. Disclosure: Long MRIN. Please review the disclaimer page for more details. 

The biggest issues facing social media stocks are the questions regarding longevity and deriving ways to monetize the massive amounts of data generated by users. Facebook ( FB ) already faces an issue where the original users are now abandoning the site while Twitter ( TWTR ) isn't grabbing the casual social media people. One thing is probably clear by now is that users crave a certain level of social interaction via social networks. The real question is whether a constant shift in social networks will take place over time similar to the social hangouts and nightclubs that constantly rotate, as new concepts push old clubs into the rear view. Read the full article at Seeking Alpha. Disclosure: Short FB. 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...

After an ad tech IPO opened up over 100%, will the other recent ad tech IPOs now rocket higher? Last week, the developer of an automated decision-making platform focused on digital advertising named Rocket Fuel ( NASDAQ: FUEL     ) had a fantastic day, suggesting that other ad tech stocks could finally perk up. Prior to this IPO surge, the whole sector had been seen as a major failure with disappointing offerings over and over. Rocket Fuel was probably the catalyst for recent surges in sector stocks of Tremor Video ( NYSE: TRMR     ) and Marin Software ( NYSE: MRIN     ) . Both stocks have traded horribly since recent IPOs, but the huge rally by Rocket Fuel might signal a major shift in sentiment in the sector. Read the full article here . Disclosure: Long FUEL and MRIN. 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. 

The recent weakness in advertising technology-related IPOs has reached a level where other firms will likely delay IPO plans. Typically, companies don’t go public when pricing below the original mid-point, yet the sector has seen several IPOs price anyway. Even worse, these stocks have performed badly after pricing, further compounding the problem. While Bloomberg suggests the online ad dominance of Google (NASDAQ: GOOG ) is the leading cause of the more » Disclosure: Long TRMR. Please review the disclaimer page for more details. 

One of the biggest reasons given for overlooking the recent IPOs of video ad-technology firms has been the threat of competition especially from Google ( GOOG ). Stocks from Marin Software ( MRIN ) to Tremor Video ( TRMR ) to last week's IPO of YuMe ( YUME ) have suffered due to market misconceptions of weakness . In the case of Tremor Video, the company reported smashing Q2 2013 results that easily crushed analyst estimates signaling that competition exists, but no different than it has been in its nearly decade of existence. Tremor Video is a leader in providing technology-driven video advertising solutions enabling brand advertisers to engage consumers across internet-connected devices such as smartphones and tablets. The company along with the sector is surging as the availability of high-speed broadband network infrastructure capable of video consumption grows on a daily basis. Read the full article at Seeking Alpha. Disclosure: Long TRMR. Please revie...

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.