Mike Arnold
Value, growth at reasonable price, long only, tech

Synacor Makes For A Tasty Takeout Target

Editors' Note: This article covers a stock trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.

It was another quarter of tough comps and forward-looking guidance for Synacor (NASDAQ:SYNC). However, Synacor remains strategically positioned to be a key benefactor of the continued rollout of the TV Everywhere phenomenon.

What does Synacor do? Its business is comprised of three main categories:

  • Search
  • Display advertising
  • Subscription services

For search and display advertising, Synacor builds and provides startpages for key telco customers. Examples of Synacor's lead pages look like this:

Desktop/Laptop:

Mobile / Cross-Device:

(click to enlarge)

Synacor then derives search revenue...

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