Entering text into the input field will update the search result below

Fluent: Short Term Pain But Long Term Gain

Apr. 12, 2021 4:39 AM ETFluent, Inc. (FLNT)CRTO, DMSL, ECOM, QNST21 Comments


  • Fluent turned in a decent FY'20 financial performance, with 11.3% revenue growth and 18.7% adjusted EBITDA growth in spite of the pandemic.
  • A shift in business strategy, eliminating lower quality traffic, is expected to result in 11% to 13% revenue drop in Q1'21 versus the same quarter last year.
  • The stock has been punished in March/April as a result of lowered expectations and the recent tech meltdown.
  • The stock is undervalued according to my relative valuation assessment and I am giving Fluent a speculative bullish rating.
  • I do much more than just articles at Digital Transformation: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

digital marketing concept, online advertisement
Photo by anyaberkut/iStock via Getty Images

For a digital performance marketing company, Fluent, Inc. (NASDAQ:FLNT) had a pretty decent 2020 despite the pandemic, with annual revenue growth of 10.3% and adjusted EBITDA growth of 18.7%. During the Q4'20 earnings call,

Digital transformation is a once-in-a-lifetime investment opportunity. Let me help you identify the best high-growth opportunities while managing risk by following my model portfolios. A subscription to Digital Transformation provides you with a quant-based approach to investing, designed to find the best Software-as-a-Service ((SaaS)), cybersecurity, and other high-growth opportunities in the Digital Transformation domain. 

This article was written by

Steve Auger profile picture

I have been trading stocks, commodities, and options for more than 25 years. I have honed my skills in quantitative analysis and various stock investment tools for 15 years at Portfolio123 and offer services as a consultant in stock portfolios. I also own the financial data service Equity Analytx which provides aggregated fundamentals for a wide range of industries.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

Comments (21)

prudent 576 profile picture
Zacks #1 strong buy.
@Steve Auger Did you have a chance to review the Q2 earnings? Do you have an opinion of the stock at $2.50?
Steve Auger profile picture
@Rencor17 this company is done for me. I have no more interest.
Real Ben profile picture
@Steve Auger WHY ?, have you read the great article from a guy called Steve Auger ?
Steve Auger profile picture
@Real Ben That great article was written before I realized the underlying ethics or lack thereof.
@steve Auger I enjoyed this article. Did you have a chance to review the Q2 earnings? Are you bullish at ~$2.50?
50% loss in share price within about a month is what I call a lot of pain in a very short period of time for the shareholders. I can only hope Ryan is -the man with a plan- and and comes up with big surprise for us.
Steve Auger profile picture
@death-by-rhino Yeah - There is a high concentration of insider ownership and the selloff is a bit concerning. I am starting to wonder about the story they are spinning about focus on higher quality traffic and larger companies.
does new strategy include cost cuts associated with low margin revenue they no longer want? no road map from management that I can find other than vague reference to change of strategy that will result in in lower revenue this year.
Steve Auger profile picture
@stompers54 They don't state any cost cuts that I am aware of, except maybe there is some associated with lower quality digital properties. It looks like the moves were necessary if they want to chase large accounts.
I agree and add 2000 shares today.
Adambombfx profile picture
Thank you for another excellent article Steve Auger and I agree with your Bullish sentiment on FLNT. I'm sitting on 2,500 shares @ $1.87 since last year and hold this along with MGNI,APPS,DMS,PERI,TTD and KBNT in my portfolio.

Steve Auger profile picture
@Adambombfx Thanks for commenting. Let's hope they turn things around quickly.
@Steve Auger what is your thoughts on the recent $3.5 million fine and the $3.30 current price?
Steve Auger profile picture
@dhsieg I just saw the fine, and I'm pissed that this company was involved with fake comments. I now wonder if the revenue drop last quarter has to do with eliminating such activities, not what they said "lower quality traffic". They claimed they stopped back in 2018 but I wonder if they are telling the truth now.
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.