Why AVG Technologies' Shares Secured Big Gains
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of data security company AVG Technologies secured big gains, jumping as much as 15%, following the announcement of a search security deal with Yahoo! .
So what: Under the new deal, Yahoo!'s search engine will be protected by AVG's Secure Search, which will scan links for malware and other viruses. Having a partnership already in place with Yahoo! prior to today's announcement made an expansion of the two companies' working relationship even easier.
Now what: AVG is very quietly building a portfolio full of top-notch clientele. It's set up a partnership with Google over the past few months and now it's expanded its partnership with Yahoo! even further. As I stated shortly after AVG's debut earlier this year, I really favor the company's "freemium" software model for at-home Internet users and valuation relative to its potential. Competitors like Symantec (which I think is a solid investment, as well) rely on OEM contracts to generate much of their revenue whereas AVG is beginning to focus on bigger clientele and cloud-based applications to move its software into the forefront. I believe AVG could head much higher over the long run.
Craving more input? Start by adding AVG Technologies to your free and personalized Watchlist so you can keep up on the latest news with the company.
The article Why AVG Technologies' Shares Secured Big Gains originally appeared on Fool.com.Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.The Motley Fool owns shares of Google. Motley Fool newsletter services have recommended buying shares of Google. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.