For Immediate Release
Chicago, IL – July 12, 2012 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Oracle Corp ), Facebook ), Best Buy Co. ), Viacom Inc. and Google Inc. ).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Wednesday’s Analyst Blog:
Oracle Set to Buy Involver
Oracle Corp is on an acquisition spree in order to expand its social media offerings. The database application vendor recently announced that it has agreed to buy social marketing software developer Involver Inc. for an undisclosed sum. The transaction is expected to close by the end of the third quarter of 2012.
San Francisco, California based Involver develops marketing applications that can be deployed exclusively on Facebook . The startup has a significant clientele that includes Best Buy Co. , Toys “R” Us Inc. and Viacom Inc.’s MTV Networks.
Social media marketing tool providers have become prime acquisition targets lately. This is due to the growing influence of social media such as Facebook and Twitter on customers’ lives. Marketers on a regular basis are using social media platforms to market their brands and also interacting with existing and prospective customers.
According to Forrester Research, advertiser spending on social media is expected to increase at a compounded annual growth rate (CAGR) of 26.0% for the period of 2011-2016. At the same time, the market for social media management tools is expected to double to $970 million in 2016 from $389.0 million in 2012.
This staggering growth potential is attracting the likes of Oracle and Google Inc. , among others. To gain an upper hand, these large vendors have been picking up companies, which they expect would not only expand their product portfolios but also provide a competitive edge.
In June this year, Salesforce announced the acquisition of Buddy Media Inc. for $689.0 million. At the same time Google acquired Meebo. In late June Microsoft announced the acquisition of Yammer Inc. for $1.2 billion in cash. However, Oracle has been the most aggressive of the bunch in recent times. The Involver deal is Oracle’s third social marketing buyout over the last three months.
In May this year, Oracle acquired Vitrue for approximately $300.0 million. Vitrue offers solutions, which marketers use to collect and collate social interaction data from Facebook, YouTube, Twitter, Google+ and many other social networking platforms. In June, Oracle announced the acquisition of Collective Intellect, a social media monitoring firm.
We expect Oracle to continue to pursue strategic acquisitions of small technology startups that are more likely to be easy to integrate along its product lines, thereby helping it to expand customer base over the long term. The strategic acquisitions are also expected to provide Oracle a significant competitive edge over its peers going forward.
However, Oracle faces significant integration risks due to the rapid pace of acquisitions within a short span of time, in our view.
We remain Neutral on a long term basis (6-12 months). Currently, Oracle has a Zacks #3 Rank, which implies a Hold rating on a short-term basis.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Zacks Investment Research
800-767-3771 ext. 9339