In a challenging market environment, Acxiom Inc . (RAMP) stock has touched a 52-week low, reaching a price level of $26.42 USD. This recent dip reflects a broader trend for the company, which has seen a 1-year change of -8.17%, indicating a period of bearish sentiment among investors. The descent to this year's low underscores the hurdles Acxiom has faced, as the company navigates through the dynamic and competitive landscape of data and analytics. Investors and market watchers are closely monitoring the company's performance and strategic initiatives to rebound from this low point.
In other recent news, LiveRamp Holdings (NYSE:RAMP) Inc. has shown impressive performance, surpassing expectations in both revenue and earnings. In the fourth quarter of fiscal 2024, the company reported revenues of $172 million, driven by robust growth in its marketplace business and an acceleration in subscription revenue. Wells Fargo maintained its Overweight rating on LiveRamp and increased the price target to $54, following LiveRamp's strong fourth quarter, and Craig-Hallum reiterated a Buy rating with a $55.00 price target, acknowledging the company's robust growth.
LiveRamp's strategic acquisition of Habu, a marketing software company, contributed to its success. The company's progress towards achieving the 'rule of 40' in fiscal year 2025, a software industry benchmark, was also highlighted by Wells Fargo, despite potential challenges from the delayed deprecation of third-party cookies.
Looking forward to fiscal year 2025, LiveRamp anticipates revenues between $710 million and $730 million. Wells Fargo's revised financial estimates for LiveRamp in fiscal year 2025 include an increase in revenue to $721 million, up from the previous estimate of $701.1 million, and an increase in non-GAAP operating income and non-GAAP earnings per share (EPS) to $127 million and $1.61, respectively. These recent developments indicate a promising trajectory for LiveRamp.
InvestingPro Insights
In light of Acxiom Inc.'s (RAMP) recent performance, a glance at InvestingPro data reveals additional insights that may be pertinent to investors. The company's market capitalization currently stands at $1.77 billion, and it is trading at a high earnings multiple with a P/E ratio of 160.17. This figure indicates a premium valuation compared to its immediate earnings. However, when adjusted for the last twelve months as of Q4 2024, the P/E ratio moderates to 98.59, suggesting some recalibration of investor expectations.
Moreover, revenue growth remains positive with a 10.57% increase over the last twelve months as of Q4 2024. This is complemented by a robust gross profit margin of 72.79%, which may signal efficient operations despite the challenging market conditions. Yet, the stock's price has seen a significant decline over the past six months, dropping by 28.23%.
InvestingPro Tips for Acxiom highlight that management has been actively repurchasing shares and that the company holds more cash than debt on its balance sheet, which could provide a cushion against market volatility. Additionally, analysts have revised their earnings expectations upwards for the upcoming period, and the company is anticipated to be profitable this year. For investors seeking a comprehensive analysis, there are over 13 additional InvestingPro Tips available, providing deeper insights into Acxiom’s financial health and future prospects (https://www.investing.com/pro/RAMP).
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