Shares of digital marketing specialist Marin Software (NASDAQ:MRIN) are skyrocketing in Thursday morning’s pre-market activity after announcing a new integration with Instacart. MRIN stock is up 75% as of 8:30 a.m.
The company said its ad management platform now lets users manage Instacart ads, something that allows brands to connect with customers more directly at the point of sale. Privately held Instacart is an online grocery platform that delivers groceries and other goods from more than 55,000 stores located in the U.S. and Canada.
The upshot of the integration is that advertisers will be able to better optimize the $40 billion-plus that they spend in digital advertising that targets shoppers by offering goods and services that complement what they are already looking to purchase. Instacart offers self-service and managed ad services for more than 2,500 CPG brands, including 100% of the Top 25 CPG companies, Marin said.
San Francisco-based Marin Software last month reported a first-quarter net loss of $2.12 million, or 21 cents a share compared to a net loss of $7.73 million, or 58 cents a share, in the comparable period. Revenue was $6.3 million compared to $8.7 million in the first quarter of 2020. Management reiterated its guidance for Q2 of a a non-GAAP operating loss of between $3.4 million and $2.9 million on revenue of between $5.5 million to $6 million.
MRIN Stock Camped Below Two Bucks
The deal with Instacart could be the catalyst that investors have been waiting for. MRIN stock has spent most of the last 18 months bouncing around under $2 a share. On Oct. 21, 2020, Marin stock jumped from approximately $1.50 a share to its then-52-week high of $5.70 in a single trading session. Not only that, but this price surge was accompanied by heavy trading volume.
Over the next few trading days, MRIN stock crashed back to $2.21, shot up to $4.47, and eased back to $2.47. So, be aware that this stock is only for folks who can handle a fair amount of volatility.
Instacart is a high-growth tactic for retailers with low investment, analysts at NielsenIQ wrote in an April 23 report. “Retailers can benefit greatly from engaging directly with Instacart to take ownership of their presence on Instacart’s platform, their in-store Instacart dynamics, and the platform’s rich data from Instacart shoppers,” the report noted.
San Francisco-based Instacart has raised more than $2.7 billion from investors that include Andreessen Horowitz, D1 Capital Partners, Fidelity Management and Research Company, Sequoia Capital and T. Rowe Price. The company has a post-money valuation in the range of more than $10 billion as of Oct. 8, 2020, according to PrivCo.
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On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, including previous stints with Bloomberg News and as a buyside equity research editor. His Substack newsletter, TLV Strategist, covers the Israel business scene.