Shares in companies who make money off of Facebook like IZEA Holdings Inc. (OTC PINK: IZEA) are surging before the IPO of FB stock launches. IZEA stock traded 2.6 million shares on Friday, reaching as high as $0.70 before closing up 27.72% at $0.645. IZEA stock price has gained as much as 288% since its low on Wednesday making it one of the hot penny stocks this week.
Penny stocks that deal in apps and games that are featured on Facebook are what drives their revenues. IF Facebook crashes, so do they. Where Ted Murphy has diversified is IZEA trends to all forms of social media, not just Facebook. While everyone focuses on the IPO of FB stock, IZEA, has more than doubled in less than a week.
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IZEA Stock Chart:
Market Cap: 24.94M
Price/Sales (ttm): 4.49
Revenue (ttm): 4.35M
Revenue Per Share (ttm): 0.18
(Feb 13, 2012): 0.85
(May 9, 2012): 0.16
Avg Vol (3 month): 184,246
Avg Vol (10 day): 1,434,400
Shares Outstanding: 38.67M
IZEA has a great concept behind it; sit on your ass and tweet promos or share them on Facebook and LinkedIn and get paid for it. The Company’s long list of clients include Playtex, KIA Motors, Walgreens (“Get Your Clotamin Now Before It’s Too Late”), Microsoft, Volvo, 20th Century Fox, and even Boudreax’s Butt Paste.
The Company’s platform lets users sign up for sponsorships, maximize their pay rate for advertisements they post, and track their performance and lifetime earnings. For example: the Company runs a Twitter program called SponsoredTweets.com, that lets any social media addict make money from sponsorships within the text of their tweets. Izea’s SponsoredTweets program is uniquely designed to benefit both niche and mass users promising even people with only a couple hundred followers the chance to earn respectable income from their sponsored tweets.
For IZEA Founder and CEO, Ted Murphy, it’s all money in the bank. Ted was just named a finalist in the 2012 American Business Awards in the Maverick of the Year category where he is guaranteed to take home the Gold, Silver, or Bronze Stevie Award.
With the Facebook IPO upcoming, what a better way to capitalize on it than to announce their guidance for 2012. (see here)Annual revenue for IZEA is now projected to 2X and annual profit margin is expected to increase as much as 60% for the calendar year. The increase is expected to be $8.6 million which is being fueled by the Company’s May, 2012 sales pipeline; $9.1 million.
Revenue from the Company’s display advertising solution, IZEA Media, 2X from December, 2011 to March, 2012. Currently there are over 70 million monthly impressions. In the future, the Company will continue to expand its celebrity network, with stars from the big screen and professional athletes.
The Company plans to report its Q1 financial results on May 15.
To view the SEC filings for IZEA, click here.
Bottom Line: The penny stock of IZEA has been astounding of late and is finally on the map for those investing and trading penny stocks. When IZEA stock popped up on the screen, many thought it was the name for Pizza offered at IKEA. Instead this is a slice of real money to be made and a company that has diversified itself to capitalize of the lazy American addiction of social media.
The hype behind the billions of dollars to be made on the FB stock is for the 1%. The other 99% are wasting their time trying to get a piece of the biggest internet IPO that, inevitably, is going to wind up like parachute pants and safety pins on your torn up t-shirt; out of style.