Couple of day’s back, I looked at DRIV NASDAQ stock rate pointing to $ 35.09, when annual and fourth quarter financial results were declared. Now, before few moments I see, Number is dropped to $ 30.78. It’s about 12 % drop in stock value. Stock analysts guess that actual revenue has dropped to $ 96.7 million. Share has dropped 4 percent in last four months.
During the first quarter of Year 2011, Digital River expects its revenue target to be $98 million.
I would like to ruminate around past few months’ progress of Digital River. Last year, Symantec has refused to renew contract for next year. So, Digital River has lost major source of work and revenue. Further, overcoming the loss, DR has won contracts from Microsoft. Currently, DR is designing e-commerce stores for Microsoft (MSFT) products. So, MSFT would be the growth factor for the first quarter in this year.
Digital River has acquired Journey Education Marketing. It was online seller of educational software, tools, CDs and DVDs. This will stimulate the few market value of DR. Online educational store is future asset of DR. All educational institutes, universities in United States are adopting online methods of testing, managing the exams and other curriculums. This would be the growth factor in coming days.
Online Gaming with FatFooGoo:
In last quarter of 2010, DR has acquired this online gaming and service provider. DR already have online gaming stores like UBSoft. Additionally new gaming store of its won is big achievement. This has added value in futuristic terms.
DR has started using social networking sites like Facebook and twitter. This Socialstream platform helps in online campaigning the products through these sites, capturing the most of the population. It has just strengthened the bond between customer and clients.
Major customers of Digital River are Microsoft (Nasdaq:MSFT) to Adobe(Nasdaq:ADBE) and Logitech(Nasdaq:LOGI), but It is also competing with few companies like Amazon(Nasdaq:AMZN), Asknet (A5AGn.DE) and GSI commerce Inc(GSIC).