Enterprise marketing software specialist Marin Software (NASDAQ:MRIN) offers a next-generation platform to help businesses manage their online advertising campaigns. It’s a company that wasn’t talked about much among traders until MRIN stock made a big move recently.
What might have caused this sudden price move? Its cause is mysterious, but we’ll try to venture a guess. Just as importantly, we’ll explore Marin Software’s value proposition to long-term investors.
We’ll also take a closer look at Marin stock’s recent price history. Moreover, we will consider what factors might drive future growth for both the company and the share price as we enter the final two months of 2020.
MRIN Stock at a Glance
The first thing you might notice about MRIN stock is that it is quite affordable. In fact, it is technically classified as a penny stock — defined by the U.S. Securities and Exchange Commission (SEC) as a stock that trades under $5 per share.
Prior to October of 2020, MRIN stock was mostly stuck in a range between $1 and $2 for many months. As a result, the financial media wasn’t too enamored of this stock.
Then, on Oct. 21, Marin stock jumped from approximately $1.50 to its 52-week high of $5.70 in a single trading session. Not only that, but this price surge was accompanied by heavy trading volume.
As InvestorPlace contributor William White pointed out, the explosive run-up on that day occurred despite the lack of significant news from the company. My best guess is that, since MRIN stock is fairly low-priced, it would only require one or more “block trades” from a major shareholder (what some people would call a “whale”) to move the price so dramatically.
Over the next few trading days, MRIN stock crashed back to $2.21, shot up to $4.47, and eased back to $2.47. So, be aware that this stock is only for folks who can handle a fair amount of volatility.
Primed for the Digital Age
Founded in 2006 and operating out of San Francisco, Marin Software helps drive ROI for advertisers. This is a timely business as more companies can be expected to digitize their campaigns in the era of Covid-19.
The company’s main software product is called MarinOne. This truly is a one-stop solution for digital advertising campaigns because timely data should drive any effective campaign.
What’s special about MarinOne is that it uses machine learning to help businesses align their ad campaigns across multiple channels. MarinOne offers solutions for:
- Breaking down publisher silos
- Managing advertising on social media platforms
- Advanced alerts and reporting
- Calculating bids
- Allocating budgets
- Providing a single view of the customer
In the realm of 21st-century digital advertising solution providers, Marin Software is an emerging market leader and MRIN stock is a pure play in this potentially lucrative niche market.
Big-League Clients and Results
All in all, the company has helped businesses manage over $40 billion worth of social and e-commerce ad spend. And Marin Software has a number of high-profile clients, including some names you’ll definitely recognize.
Among these big-league clients is none other than automotive giant Nissan Motor (OTCMKTS:NSANY). As Marin Software reports, the company is responsible for a 25% increase in conversions for Nissan.
Furthermore, Marin Software facilitated a 20% decrease in cost per click (CPC) for Nissan. Additionally, Marin saves 3,500 hours per year managing bids for the Japanese automaker.
If the company can provide such impressive results for Nissan, it’s not hard to imagine Marin Software taking on projects of just about any size and scope. I expect Marin to continue executing on more complex digital ad tracking projects that other firms simply can’t handle.
We might never know exactly what prompted the sudden price spike in MRIN stock. That’s fine because Marin Software’s ability to execute for its large-scale clients suggests that the share price can go much higher.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation.