Local.com, SuperMedia: Tech Winners
NEW YORK (TheStreet) -- Local-oriented stocks made big gains Friday, as startups like Groupon, Milo.com and LivingSocial, which focus on finding neighborhood deals for consumers, were cast into the spotlight on recent M&A news.
Local.com (LOCM), a business search engine and advertising network, rose 8.1% to close at $5.47, while small business marketing and advertising company SuperMedia (SPMD) spiked 20.2% to close at $6.79.
Even Yellow Pages publisher Dex One (DEXO), which has recently struggled with layoffs and cost-cutting, jumped a whopping 39.9% and closed at $6.70.
Takeover speculation may have contributed to the increase in stock price among these companies, said Jon Hickman, an analyst at MDB Capital Group.
Potential suitors looking to beef up their offerings in local include Yahoo! (YHOO), AOL (AOL) and IAC (IACI), said Hickman. Earlier this week, reports swirled that popular daily deals site Groupon was in acquisition discussions with Google (GOOG), while competitor LivingSocial announced a $175 million investment from Amazon (AMZN). On Thursday, local shopping engine Milo.com was snapped up by eBay (EBAY) for around $75 million. Local stocks outperformed the broader tech market Friday, which rallied in the afternoon. The Nasdaq gained 12 points, or 0.5%, to 2,591. --Written by Olivia Oran in New York.>To follow the writer on Twitter, go to http://twitter.com/Ozoran. >To submit a news tip, send an email to: tips@thestreet.com.
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