Tucows’ stock in on fire
Shares up over 50% since May 1.
If you bought shares of Tucows at the opening price on May 1, just a month ago, you’ve by now realized a return of a whopping 57%.
Shares in Tucows are on fire on the NASDAQ, where it trades under the ticker TCX.
It’s not entirely clear what’s behind the surge. The firm noted earnings on May 7, but the stock didn’t start to surge until a week later. Here are some possible reasons behind the price pop:
1. Share buybacks. Tucows is buying back up to $20 million on the open market. Rationally, this wouldn’t justify a 50% pop in market cap. But open market buys could be pushing prices higher.
2. Increased analyst coverage. It’s been regarding 18 months since Tucows moved from the Toronto Stock Exchange to the NASDAQ and executed a reverse stock split. Shares have been solidly up over that time, but the added analyst attention might be paying off more all of a sudden.
3. The firm is being valued as a technology firm. Tucows has moved into the telco and ISP arenas, and people might be valuing the firm differently as this becomes the firm’s key growth driver.
4. GoDaddy. GoDaddy’s IPO has made people focus on other domain name firms, counting Endurance International Group and Tucows.
5. A sizable player is growing its stake in the firm. Institutional buyers might be warming to Tucows.
