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 software automation company Marketo surged 12% today on continued enthusiasm for its long-term growth prospects.
So what: The stock skyrocketed 75% on Friday when Marketo launched its IPO, so today's follow-up rally suggests that investor interest in the space only increasing. In fact, software gorilla Oracle recently acquired Marketo's main rival, Eloqua, which is probably giving traders the justification they need to keep bidding up Marketo.
Now what: With such strong cloud-computing trends working in its favor, Marketo is certainly worth following. "Buyers really want to deal with category leaders," said CEO Phil Fernandez. "I think the real demand is for pure play companies in each segment. That really lets us shine as that company." Of course, given just how much growth is baked into the stock right now, I'd wait for a big hiccup before buying into that bullishness.
Interested in more info on Marketo? Add it to your watchlist.
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The article Why Marketo Shares Soared Again originally appeared on Fool.com.
Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool owns shares of Oracle. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.
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