Stock investors still think .com is king.
Verisign reported earnings yesterday and shares in the company are up 12% in trading so far today.
Why the jump in share price after a dismal quarter for net domain name adds?
Well, Citigroup upgraded the company from sell to neutral today saying “fundamentals have likely bottomed”. Financials apparently exceeded most expectations.
Verisign had just 0.42 million net adds in .com and .net last quarter. It expects Q3 net adds to rebound to between 0.6 million and 1.1, which is definitely a move in the right direction. With slipping renewal rates, these targets would indeed be rather strong and require strong new registrations.
The company also announced a 10% price hike on .net. No knowledgeable analyst didn’t see that coming, though.
Of course, when the first credible report comes out suggesting that new TLDs are making a dent in .com…