Jim Cramer's Best Blogs
Meanwhile, Millennial supports everyone's system -- and the bigger, better and higher resolution a smartphone is, the more money it will get for ads. So it is a pretty terrific derivative play.
Why is mobile not problematic for Millennial? The new cell phones enable advertisers to communicate through video, and mobile video is one of the most successful forms of advertising there is. Advertisers are paying more money for mobile video than they are for desktop banners, and the adoption is just occurring.
I believe that, with the trends going as they are, it will be difficult for Millennial to stay independent. It's a wonder that, at $1 billion in market capitalization and 75% revenue growth, this company hasn't been picked off already -- especially considering how so many others are struggling with mobile monetization.
So why is it languishing at the level it occupied when it came public? First, we know the misery that social and mobile Internet stocks have visited on shareholders. Second, 64 million shares will be freed from a lock-up on Sept. 25. Given that there are only 73 million shares outstanding, you know people have to be worried about this, potentially the mother of all expirations.
Look, this could turn out to be a Yelp(YELP) type of situation, in which so many shorts were put on ahead of expiration that the stock ran when there wasn't enough supply for the shorts to cover on.
You also can't presume, given how well the company has executed and how it should be nicely profitable next year, that the stock will be for dumped by all of the venture capitalists in the deal.
Nevertheless, it is sure worth doing the work, because all of the growth trends are going Millennial's way, and you have to believe one of the major online players would like a stake in the mobile ad server and support game. They sure can't buy the No. 1 and No. 3 players -- respectively, Google and Apple. But to snap up the No. 2 player -- now, that makes all of the sense in the world.
Action Alerts PLUS, which Cramer co-manages as a charitable trust, was long AAPL.
Just Bite Into Apple Already
Posted at 3:24 p.m. EDT on Wednesday, Sept. 12
Oh, for heaven's sake, stop trading Apple(AAPL) and start owning Apple. People are trading the stock as if it were a movie and sending it up and down based on the latest review.