Digital marketing software provider Marin Software (NASDAQ:MRIN) specifically targets advertisers and agencies as clients. Publicly traded since 2013, MRIN stock has seen its share of ups and downs this year.
As we’ll soon explore, MRIN stock is currently trading at a reduced price. Value hunters might find the stock to be much more attractively priced than it was just a few weeks ago.
In the era of the novel coronavirus, anything associated with e-commerce seems to have the magic touch. This is particularly true if there’s a connection to e-commerce giant Amazon (NASDAQ:AMZN).
So, what specifically is the Amazon connection and how will it benefit MRIN stock holders? That’s the billion-dollar question as we take a closer look at an enterprise software up-and-comer with tremendous potential.
MRIN Stock at a Glance
Like some other stocks in the technology niche, MRIN stock cratered in March due to the onset of the coronavirus but then recovered. Admittedly, the slump from $1.68 to the 52-week low of 77 cents was gut-wrenching.
Thankfully, this was followed by a swift recovery in MRIN stock. By the end of April, MRIN was trading at $1.81, which was higher than the previous peak.
As will often happen in the markets, MRIN stock then proceeded to test the patience of its shareholders. Month after month, the stock was mired in a sideways grind.
Finally, in October MRIN stock popped to its 52-week high of $5.70. In hindsight, we now know that this price surge wasn’t meant to last. Thus, by Nov. 12, MRIN declined to the much more attractive share price of $1.88.
Therefore, at least it’s possible to take a long position today, knowing that you’re not chasing high prices in MRIN stock.
Cost Reduction in Focus
Not long ago, Marin Software released its fiscal data for the third quarter. During this time, the company recorded $6.8 million in net revenues while acknowledging the impact of the coronavirus pandemic.
In order to address this challenge, Marin implemented a restructuring and reduction-in-force plan during the third quarter.
While it is unfortunate to have to reduce the company’s workforce, this was a necessary step to cut back on Marin’s operating costs during this difficult time.
Marin expects to reduce its global workforce by around 60 employees through this plan. The good news is that the majority of these proactive workforce-reduction actions already took place during the third quarter.
Enhancing the Amazon Connection
Marin Software is known for working with some big-league companies. One example would be automaker Nissan Motor (OTCMKTS:NSANY). Impressively, Marin has been responsible for a 25% increase in conversions for Nissan.
Nissan’s a big name, but an even bigger name is Amazon. As Marin Software CEO Chris Lien observes, Amazon will continue to be a pivotal component of the e-commerce ecosystem during this holiday season:
The increase in online commerce that has been generally observed since the beginning of the COVID-19 pandemic combined with the upcoming Q4 retail season both highlight the importance of Amazon as part of a digital marketing strategy.
This is why Marin’s integration with Amazon Attribution is so important right now. As the CEO explains, Marin “unlocks what is currently a black box for many advertisers,” providing insights so they’re not “flying blind and likely undervaluing their performance.”
Moreover, during the third quarter Marin strengthened its Amazon connection by enhancing bulk editing and creation support for Amazon in MarinOne. It’s a savvy pre-holiday move during a time when e-commerce continues to reign in the realm of retail.
The Takeaway
MRIN stock is trading at a reduced price and that’s good news for prospective buyers.
With an enhanced Amazon connection as the holiday season approaches, the company’s digital marketing software could provide exceptional value for clients and revenues for Marin Software.
On the date of publication, Louis Navellier had a long position in AMZN. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation.
