Answers.com Lands IE7 Placement; Stock Jumps 21%

Earlier this year, I met up with Bob Rosenschein, the CEO of Answers.com (Nasdaq: ANSW). He gave me a demo of his cool web site – and I continue to use it. It’s kind of like an online encyclopedia but is based on licensed content. In other words, I can trust the content.

Well, today, the company got a big boost. That is, Microsoft (Nasdaq: MSFT) is now a customer. So, Answer.com’s 1-Click system will be a recommended add-on for the new Internet Explorer 7.

Here’s how it works: when surfing the web, you can press Alt-Click on any word or phrase and you will get the Answers.com search box.

Of course, the stock price of Answers.com skyrocketed by 21.36% to $13.18. And, yes, the Microsoft relationship should help boost traffic – as well as the brand.

But, the stock is probably worth waiting on. After all, the company is fairly small (especially when compared to its $100 million market cap), with only $1.5 million in revenues in the second quarter and a net loss of $2.8 million.