Why Digital River (DRIV) Stock Is Up Today?

 Digital River, Inc. (NASDAQ:DRIV) closed higher by 43.24% to $24.415, joined into a material contract with Microsoft Corp. (NASDAQ: MSFT) that will extend the Microsoft Operations Digital Distribution Agreement to March 31, 2017.  

The Internet software organization also declared that it expects its merger with Siris Capital to close in the first quarter of 2015.

Highlights the following follows:

·         DIGITAL RIVER INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The organization has demonstrated a pattern of positive earnings per share increase over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, DIGITAL RIVER INC continued to lose money by earning -$0.57 versus -$5.61 in the prior year. This year, the market expects an improvement in earnings ($0.51 versus -$0.57).

·         The net revenue raise from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet Software & Services industry. The net revenue improved by 133.3% when compared to the same quarter one year prior, increasing from -$12.49 million to $4.15 million.

·         Despite currently having a low debt-to-equity ratio of 0.38, it is higher than that of the industry average, inferring that administration of debt levels may need to be evaluated further. Despite the fact that DRIV's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.96 is high and demonstrates strong liquidity.

·         DRIV has underperformed the S&P 500 Index, declining 5.80% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.

·         Net operating cash flow has significantly declined $5.53 million or 69.91% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

About Digital River,

Digital River, Inc. provides end-to-end cloud-commerce, payments, and marketing solutions to various companies in the United States, Europe, the Asia Pacific, and South America. Its solution combines a Commerce-as-a-Service commerce technology platform, commerce business infrastructure (CBI), and a suite of services to help businesses to avoid the costs and risks of running an integrated global commerce operation in-house. The company offers various services, including design, development, and hosting of commerce stores; merchandising; order management; fraud prevention screening; processing of popular localized online payment methods; export controls and management; tax compliance and management; digital product delivery via download; physical product fulfillment; multi-lingual customer service; subscription management; online marketing services, such as email marketing; paid search program management; Website optimization; and Web analytics and reporting services, as well as other programs.