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Why Digital Marketing is the Heart of the Bull Market (CRM, DOX, GEGR, TTD)

The stock market has been in “Full Bull” mode for the better part of the past decade. But no phase of that run has been as aggressive as we have seen in recent weeks when it comes to investor enthusiasm, especially when considers options market activity. Call option bets from retail market participants have started to verge on all-time records as the retail audience asserts itself perhaps for the first time since the late 1990’s.

And one of the key ideas driving that strength is how new technologies are transforming old industries, with marketing and advertising sitting near the center of that narrative.

While you may not have noticed it, digital marketing and advertising stocks have been lighting up the scoreboard, offering brands increasing value as companies search for new and innovative ways to engage with end market consumers.

With that in mind, we take a look at some of the most compelling opportunities in the space, including: Amdocs Limited (NASDAQ:DOX), salesforce.com inc (NYSE:CRM), Gaensel Energy Group (OTMKTS:GEGR), and Trade Desk Inc (NASDAQ:TTD).

 

Amdocs Limited (NASDAQ:DOX) bills itself as a company that partners with the leading players in the communications and media industry, enabling next-generation experiences in 85 countries.

Its cloud-native, open, and dynamic portfolio of digital solutions, platforms and services brings greater choice, faster time-to-market, and more flexibility to better meet the evolving needs of our customers as they drive growth, transform and take their business to the cloud. Listed on the NASDAQ Global Select Market, Amdocs had revenue of $4.2 billion in fiscal 2020.

Amdocs Limited (NASDAQ:DOX) announced that Vodafone Romania and Amdocs partnered to jointly develop the Digital Experience platform for digitalizing the retail experience. This will give Vodafone Romania a 360-degree view of its customers across a number of touchpoints while integrating fixed and mobile communication products into a converged retail product. The project included moving several key components and capabilities into the AWS cloud.

The project is a key milestone in Vodafone Romania’s journey towards a technology communications company where strong internal software engineering capabilities enabled a new partnership model with Amdocs. Through the digital transformation of its retail experience, Vodafone Romania can now better understand its customers’ journeys by leveraging smart systems to interact with its customers in a more focused, tailored and effective way.

Even in light of this news, DOX hasn’t really done much of anything over the past week, with shares logging no net movement over that period. Shares of the stock have powered higher over the past month, rallying roughly 5% in that time on strong overall action.

Amdocs Limited (NASDAQ:DOX) generated sales of $1.1B, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 2.7% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($983.9M against $1.2B, respectively).

 

salesforce.com inc (NYSE:CRM) trumpets itself as a company that develops enterprise cloud computing solutions with a focus on customer relationship management. The company offers Sales Cloud to store data, monitor leads and progress, forecast opportunities, and gain insights through analytics and relationship intelligence, as well as deliver quotes, contracts, and invoices.

It also provides Service Cloud, which enables companies to deliver personalized customer service and support, as well as a field service solution that enables companies to connect agents, dispatchers, and mobile employees through a centralized platform, which helps to schedule and dispatch work, and track and manage jobs in real-time. In addition, the company offers Marketing Cloud to plan, personalize, and optimize one-to-one customer marketing interactions; Commerce Cloud, which enables companies to enhance engagement, conversion, revenue, and loyalty from their customers; and Community Cloud that enables companies to create and manage branded digital destinations for customers, partners, and employees.

salesforce.com inc (NYSE:CRM) most recently announced that it has collaborated with Gavi, the Vaccine Alliance, to help Gavi manage critical information to equitably distribute approximately two billion COVID-19 vaccines to 190 countries by the end of 2021.

According to the release, fair, rapid and equitable access to vaccines is critical to ending the global pandemic. Public-private partnerships, such as Gavi, which are focused on getting vaccines to some of the world’s poorest countries, need to be armed with data and technology to facilitate distribution at scale. The ability to manage huge volumes of country data is essential.

Even in light of this news, CRM has had a rough past week of trading action, with shares sinking something like -3% in that time. That said, chart support is nearby, and we may be in the process of constructing a nice setup for some movement back the other way.

salesforce.com inc (NYSE:CRM) pulled in sales of $5.4B in its last reported quarterly financials, representing top line growth of 20.1%. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($9.5B against $12.2B, respectively).

 

Gaensel Energy Group (OTMKTS:GEGR) us an interesting name in the space because of its cheap price and recent powerful transition toward a new holding company model pursuing a diversified model with growing strategic interests in the Energy, Manufacturing, Software, and Technology markets.

The company has recently been rolling up properties toward the establishment of a market leading framework in the digital marketing, technology, and advertising space. Its recent moves suggest the potential to make serious waves in the industry, with ties to top global firms and a vision that includes the establishment of a cross-Atlantic powerhouse market position.

Gaensel Energy Group (OTMKTS:GEGR) recently announced the acquisition of Suite 110 SRL, providing dynamic solutions for Small and Medium Enterprises (SMEs), with annual revenues in excess of $8,000,000 USD.

According to the release, Suite 110 SRL that provides an all-in-one CRM management, sales and marketing system, encrypted cloud storage for secure documents, project management, invoicing and accounting, warehouse, logistics and inventory optimization, connectivity for multi-bank and cash management, and a number of other features that provide businesses with a platform that streamlines operations in one secure platform.

The company’s founder and Director Helmut Gaensel stated, “This is one of a number of active acquisition targets we have and continue to be negotiating and today we are pleased to have finalized the acquisition of this additional Company. Our management team has identified a number of companies and Intellectual Property ripe for acquisition and expansion as a result of the pandemic.”

This dovetails with another acquisition that appears to be in the works with a company that has clients spanning the highest orders of the blue-chip ranks. As such, it isn’t surprising that the stock has been acting well over recent days, up something like 8% in that time. Shares of the stock have powered higher over the past month, rallying roughly 7% in that time on strong overall action.

Gaensel Energy Group (OTMKTS:GEGR) had no reported sales in its last quarterly financial data. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($455 against $463K, respectively).

 

Trade Desk Inc (NASDAQ:TTD) is a cloud-based advertising-buying platform. Ad buyers can value each impression like traders value stocks, using first and third party data to decide which impression to buy and how much to pay. Its platform enables advertising clients to purchase and manage digital advertising campaigns across various formats, including connected TV (CTV), mobile, video, audio, display, social and native, on a multitude of devices, including smart TVs, computers, and mobile devices.

As the company frames itself, it provides a self-service omnichannel software platform that enables clients to purchase and manage data-driven digital advertising campaigns in the United States and internationally. The company’s platform allows clients to manage integrated advertising campaigns in various advertising channels and formats, including connected TV, mobile, video, audio, display, social, and native on various devices, such as smart TVs, computers, and mobile phones and tablets. It serves advertising agencies and other service providers for advertisers.

Trade Desk Inc (NASDAQ:TTD) recently announced that Nielsen (NYSE:NLSN) is supporting the industry-wide initiative to develop and deploy Unified ID 2.0.

According to the release, with initial development led by The Trade Desk, Unified ID 2.0 is a new industry-wide approach to internet identity that preserves the value of relevant advertising, while putting user control and privacy at the forefront. The ID is an upgrade and an alternative to third-party cookies.

Even with that news, the action hasn’t really heated up in the stock, with shares moving net sideways over the past week.

Trade Desk Inc (NASDAQ:TTD) pulled in sales of $216.1M in its last reported quarterly financials, representing top line growth of 31.6%. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($557.3M against $1B, respectively).

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