No. of Recommendations: 4
They've only been public since Apr 2014, so EVERY QUARTER means eight, 2 years worth. And, they've only recently posted a profit, a point in time that always garners fresh investors.

When they IPOed, they opened at $17.50 and closed at $20 - that's where they were at the time of the Hochfeld article. The opportunities to make money on RUBI have been in trading it. They IPOed during and/or just prior to the big ad publishers acquiring their own ad platforms (example: FB bought LiveRail (video) four months after), that's a lot of the reason why the IPO didn't take-off and dropped to $9. Ad Network agreements and Competitor Acquisitions play a much bigger role than guidance in the fluctuation of their stock price. Part of the reason for this drop is that they stated they weren't taking a piece of election ad rev - misunderstood by analysts, which had helped it ride toward $20.

Chango played a big part of recent earnings. But, as I stated in the AdExchanger article, that I linked to in a previous thread, this will not contribute so largely in the future. (FYI: Many, including Hochfeld, who BTW notes he's a convicted felon in his bio, compare Criteo to RUBI. What is comparable is Chango and Criteo.)

With the ever-changing landscape, through merger and acquisitions, customer migration (see the Datanyze site for stats) and changes in Ad Network agreements, I believe the CFO guidance, confidence-wise, can't look too far out. Also, I didn't find that his guidance while with GOTO (Overture), which was a mutli-bagger for me before it was bought by Yahoo, was low-balled. Honestly, I've got more faith in him and AdExchanger than Hochfeld, the former two being industry experts. IMO, it's better safe than sorry on this stock. I do still own some in the $9's. The high teens allowed my to scale out a bit.

- FB, GOOG are 5x the holdings for me when comes to ad tech revenues, much safer bets.
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.