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Millennial Media (MM -37.5%) had defenders on this bleak day. "We believe the shortfall was...

Millennial Media (MM -37.5%) had defenders on this bleak day. "We believe the shortfall was largely the result of sales execution in an immature market and not a sign of competitive losses," asserts Goldman. Oppenheimer, whose bullish call didn't quite pan out, thinks the mid-2013 launch of a real-time bidding platform (no doubt aided by Metareolver) could help. But Morgan Stanley, which cut shares to Equal Weight, isn't so positive. "We ... worry that MM is either losing share to larger competitors or becoming commoditized by audience platforms." (Q4: I, II, III) (transcript)
Comments (2)
  • 166649
    , contributor
    Comments (350) | Send Message
     
    MM Millennial Media shares should be bought on weakness, says Oppenheimer

     

    Oppenheimer notes, while MM bears will suggest competition is cutting into rev growth, it believes the Co is leveraging its leading position to diversify its product offerings. Although it reported mixed 4Q results, firm is increasing its '13 and '14 EBITDA ests on higher margins and maintaining its $19 tgt. 4Q rev was below guidance on pull-back in retail advertising; however, EBITDA exceeded expectations on a shift to higher margin/quality ads. 2013 rev guidance below Street on decision to forgo low-quality, download ads. Launch of mobile RTB platform in mid-2013 could provide upside to guidance.

     

    Opco views MM shares as the best way to play mobile transition and would be buyers on weakness.
    20 Feb 2013, 06:06 PM Reply Like
  • Valuable Insights
    , contributor
    Comments (485) | Send Message
     
    We recommended a short months ago http://bit.ly/SN3Oin
    We absolutely don't understand how anyone can defend shares. The company grew 68% last year, a huge deceleration, and far below the market growth rate. If they are not taking "low-margin" business, then the size of the market is exaggerated because much of it is not interesting/addressable. Further, they should be massively outgrowing the market if they have the unique value-add analytics they claim they have. This is a low multiple business dressed up with sex appeal. Hmmm, how much stock did insiders sell last fall?
    20 Feb 2013, 06:26 PM Reply Like
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