DoubleClick (DCLK) shares jumped 12.4% Tuesday on news of a customer win for the firm's ad-serving technology.
Tuesday's news of an agreement with Internet portal firm
represents a ray of hope for DoubleClick in the beaten-down world of Internet advertising. The stock, trading at $14.75 Tuesday afternoon, hit a 52-week low of $8.75 last Wednesday. Earlier this year, it zoomed as high as $135.25, but has been driven down by privacy-related concerns and by the weak Internet advertising market.
NBCi has signed a long-term, exclusive agreement with DoubleClick to use the firm's Dart for Publishers product, an outsourced service that Web sites use to target ads to visitors to their sites. Eric Hansen, an analyst at Dain Rauscher Wessels who follows DoubleClick, calls the deal a "material contract with upside potential," estimating that the contract is worth $1 million to $2 million in revenue per quarter for DoubleClick, which reported $135.2 million in revenue in the quarter ended Sept. 30.
Hansen reports that DoubleClick beat out competitor
for the contract. Hansen has a buy, his firm's second-highest rating, on DoubleClick, and a price target of $40; his firm hasn't done underwriting for DoubleClick. Engage shares were up 3.5% Tuesday afternoon.