FROM CBS MARKETWATCH! I LOVE THE TARGET PRICE OF $300/SHARE
SEATTLE (CBS.MW) -- Shares of RealNetworks could jump Wednesday
after the Internet-media software developer announced record revenue
growth and a 2-for-1 stock split.
Ahead of the report, investors already showed their zeal for the company,
bidding its stock (RNWK: news, msgs) up a whopping 52 7/16, or 41
percent, to 181 1/16, to snap a 5-day losing streak.
RealNetworks, based in Seattle, said it lost $700,000
in the first quarter, or 2 cents a share, a penny better
than expectations. This compares to a $2.2 million
loss in the same period a year ago.
Quarterly revenues grew faster than analysts
predicted, rising 88 percent to $23.5 million.
The Seattle-based company also said it would split
its stock 2-for-1 for shareholders of record date
April 27.
The number of registered users grew to 60 million, in
line with expectations and the company's guidance,
and up from 50 million by the end of last year. The
company's RealPlayer software had been averaging about 175,000
downloads per day in the most recent month.
"The company proves to be a core-Internet
franchise," said analyst Rob Martin at Friedman,
Billings, Ramsey. "They're setting the stage by
developing the streaming platform on the Web and
we're starting to see them monetizing the user base
over the coming quarters," added Martin, who
reiterated his $300 price target ahead of the
quarterly report.
After hitting an all-time intraday high of 263 3/4,
RealNetwork's stock tumbled 25 percent on Monday
amid a broad-based sell-off in Internet issues.
The company also faces competition from Microsoft
and Apple, which both develop so-called streaming
software products for using audio and video over the
Net.
RealNetworks' partnership with IBM to create a
standard for delivering music securely over the Web,
however, is seen as a solid team to compete in its
increasingly competitive arena. |
