How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in j2 Global ten years ago? It may not have been easy to hold on to JCOM for all that time, but if you did, how much would your investment be worth today?
j2 Global's Business In-Depth
With that in mind, let's take a look at j2 Global's main business drivers.
Los Angeles-based J2 Global provides internet information and services. The company reported revenues of $1.49 billion in 2020.
J2 Global reports primarily in two business segments: Digital Media and Cloud Services.
Digital Media accounted for 55.5% of total revenues in 2020. The business specializes in the technology, shopping, gaming, and healthcare markets, offering content, tools and services to consumers and businesses.
The segment operates a portfolio of web properties and apps, including IGN, Mashable, PC Mag, Humble Bundle, Speed test, Offers, Black Friday, AskMen, MedPage Today, Everyday Health and What to Expect, among others.
The company generates revenues from advertising and sponsorships, subscription and usage fees, performance marketing and licensing fees.
During 2020, Digital Media web properties attracted approximately 9.1 billion visits and 31.5 billion page views.
J2 Global competes with IAC/InterActiveCorp, Red Ventures, Internet Brands, Google, Facebook and others in the Digital Media segment.
Cloud Services accounted for 45.5% of total revenues in 2020. Through this segment the company provides cloud-based subscription services to consumers and businesses including cloud fax, cybersecurity, privacy and marketing technology.
The company generates most of the revenues from customer subscription and usage fees.
Through this segment the company offers Cloud Fax (eFax, sFax, SRFax, MyFax, and eFax Corporate), Cybersecurity (VIPRE, Inspired eLearning, IPVanish, SugarSync, Encrypt.me and LiveDrive) and SMB Enablement Services (Campaigner, iContact, eVoice and Line2).
J2 Global’s Cloud Services business faces competition from cloud fax-providers, traditional fax machine or multi-function printer companies, unified messaging/communications providers, healthcare inoperability solutions, email marketing solution providers, cyber security software and service vendors, and virtual private networks.
Moreover, J2 Global’s online fax and cybersecurity solutions compete against traditional fax machine manufacturers as well as providers of online fax services, cybersecurity solutions and related software, including OpenText and Mimecast.
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in j2 Global a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in June 2011 would be worth $4,535.73, or a 353.57% gain, as of June 10, 2021. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 227.35% and gold's return of 18.59% over the same time frame.
Looking ahead, analysts are expecting more upside for JCOM.
J2 Global’s first-quarter 2021 results benefited from outstanding growth in Cloud Services and Digital Media segments. The company’s broadband assets, Ookla and Ekahau grew in the reported quarter. Tech and gaming brands including IGN, Spiceworks, Mashable and PCMag witnessed growth driven by a strong advertising market. Moreover, gross margin expanded driven by solid growth in Digital Media margin. Notably, J2 Global's shares have outperformed the industry in the year to date period. J2 Global continues to benefit from accretive acquisitions and growing cybersecurity portfolio (endpoint email and VPN) that are expected to boost its prospects in the long haul. It expects to generate solid free cash flow. However, the company plans to invest in cybersecurity, Martech and RetailMeNot to support future growth, which will hurt margin.
The stock has jumped 5.37% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 4 higher, for fiscal 2021; the consensus estimate has moved up as well.