Trading just kicked off an hour ago, but one software company is already seeing significant gains. Marin Software (NASDAQ:MRIN) is off to an impressive start, with shares rising more than 70% in the first hour of trading. Known for its cloud-based innovations in the field of digital advertising technology, the company began making moves during after-hours yesterday, and shares of MRIN stock show no immediate sign of slowing down.
What Happened with MRIN Stock?
As of this writing, Marin is currently up by 55% for the day, although the number has fluctuated a bit in the first hour of trading. This comes on the heels of a week of mostly flatlining, in which shares of MRIN stock never saw a gain of more than 1.79% and spent several days in the red.
What’s causing this sudden spike? All signs point to the revenue-sharing agreement that Marin just entered into with Alphabet, (NASDAQ:GOOG, NASDAQ:GOOGL), as per an SEC filing. It didn’t take long for shares to start rising and continue to do so into the next trading day.
What It Means
According to Benzinga, the agreement between the two companies will go into effect on Sept. 30, pending the termination of an existing contract between the two companies. If all goes according to plan, and there’s no reason to assume that it won’t, Oct. 1 will mark the first official day of trading with Marin and Google as partners in this venture.
It’s worth noting that this new contract comes directly before the expiration of the first agreement between the two companies. Their first partnership clearly went well, as Google made proactive moves to ensure that they entered a new one.
What’s Next for MRIN Stock?
For a company like Google, who could partner with any company in the sector, renewing an agreement with Marin should signal two things to investors — that Marin is a reliable revenue-sharing partner and that its technology is both sound and trustworthy.
It’s not hard to see why Google would be initially be drawn to a company like Marin, whose integrative software-as-a-service technology serves to benefit both agencies and independent advertisers. For it to renew the partnership signals that it wants to ensure that the smaller company doesn’t enter into a partnership with one of Google’s competitors as the tech giant seeks to make further moves in the markets of digital advertising and analytics.
This development has clearly inspired further investor confidence in Marin, as well it should. MRIN stock is poised to continue on a pattern of steady growth as the new partnership takes shape and it works to develop tech with Google.
On the date of publication, Samuel O’Brient 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.