As Digital Marketing continues to take center stage, companies like Rocket Fuel look to capitalize on the explosive DSP industry. Rocket Fuel, which delivers targeted advertising campaigns using artificial intelligence to drive ROI, surged over 100% in the first day of trading signaling investors' affinity towards the digital marketing space. The stock was priced at $29 and opened at $59.95 on its first day of trading.
With Facebook virtually proving the validity of the mobile advertising business model and with Twitter set to IPO in the next 6 months, the digital marketing world is on watch. Investors are clamoring for hot IPOs as the demand for proprietary technology increases. Investors see the runway that lies ahead as the market expands by double digits annually and opportunities arise to chip into the global powerhouse that is Google.
Time will tell as to whether these growing media companies truly possess the proprietary technology and algorithms to deliver 10x ROI or whether a $2B valuation for a negative cash flow business with just over $150MM in annual revenue (LTM) is just another example of an overheated tech market. One thing is for certain, many pre-IPO media companies were licking their chops Friday after RF "rocketed" through Wall Street...
Sean Breuner
http://www.reuters.com/article/2013/09/21/us-rocket-fuel-ipo-idUSBRE98J0JR20130921
With Facebook virtually proving the validity of the mobile advertising business model and with Twitter set to IPO in the next 6 months, the digital marketing world is on watch. Investors are clamoring for hot IPOs as the demand for proprietary technology increases. Investors see the runway that lies ahead as the market expands by double digits annually and opportunities arise to chip into the global powerhouse that is Google.
Time will tell as to whether these growing media companies truly possess the proprietary technology and algorithms to deliver 10x ROI or whether a $2B valuation for a negative cash flow business with just over $150MM in annual revenue (LTM) is just another example of an overheated tech market. One thing is for certain, many pre-IPO media companies were licking their chops Friday after RF "rocketed" through Wall Street...
Sean Breuner
http://www.reuters.com/article/2013/09/21/us-rocket-fuel-ipo-idUSBRE98J0JR20130921
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