Marchex Inc. (MCHX) Stuns with FaceBook (FB) Partnership!

Marchex Inc. – Nasdaq: MCHX

Barely more than four months after Marchex’s CEO and Executive Chairman left the company, the advertising analytics firm has made a huge splash by announcing a partnership with vaunted FaceBook (Nasdaq: FB). The news sent Seattle, WA-based Marchex stock gapping up over $1 on the open of trading. MCHX, traded on the Nasdaq, ended Wednesday’s session at $2.54, opened at $3.59 this morning, and reached $3.75 before settling back around $3. Volumes have been massive – average daily trading volumes are just over 100k, but by the early morning over three million shares of MCHX have traded hands. 

Facebook is said to be partnering with Marchex to help ensure that reliable and advanced call analytics are available to FaceBook marketers. As one of the most important touchpoints in the customer journey, Facebook’s influence is immense, but ad exposure on social media can be difficult to tie back to phone calls or in-store purchases. This partnership seeks to eliminate that blind spot by giving marketers a deep understanding of what happens on a phone call that stems from a Facebook ad. This level of insight and ability to immediately measure cross-channel impact is what FaceBook believes today’s marketer needs to convert prospects into customers.

Doug Weiss, product partnership manager at FaceBook stated in a press release “Partnering with Marchex to couple rich call analytics with Facebook’s own data is a significant step forward for marketers who must understand their audience and make sound, real-time decisions to increase their revenue.”

MCHX shareholders could use this good news – MCHX used to trade at four times Wednesday’s closing price. EPS for MCHX has been negative for the past four years and in 2015 the company posted a loss of $0.05 on sales of $143 million. Only one firm follow Marchex and its analyst assigns MCHX shares a “Hold” rating with a price target of $3.25.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

2/9/2017
Ticker Symbol HCMX
Last Price a/o 9:54 AM EST  $                      3.07
Average Volume                    101,230
Market Cap (mlns)  $                  108.41
Sales (mlns) $136.00
Shares Outstanding (mlns) 42.68
Share Float (mlns) 32.07
Shortable Yes
Optionable Yes
Inside Ownership 4.30%
Short Float 1.33%
Short Interest Ratio 4.22
Quarterly Return 1.60%
YTD Return -4.15%
Year Return -31.35%