One of the more intriguing little-known stocks making a big move in today’s session is Loop Media (NYSEMKT:LPTV). Although they are now down 5%, shares of LPTV stock climbed more than 20% at one point today after the company announced what appears to be a compelling strategic partnership with Microsoft (NASDAQ:MSFT).
Loop Media is a digital video content company, providing free ad-supported TV platforms seen in many gas stations, airport terminals, bars, restaurants and more. The company provides its entertainment through its proprietary Loop Player, which streams a range of content including “sports highlights, lifestyle and travel videos, viral videos and more.”
The company’s new “strategic alignment” with Microsoft Advertising aims to “provide an additional distribution category to advertisers and DSPs from which they can access and purchase Loop Media advertising impressions.” In essence, it appears Microsoft is looking to amplify its advertising business, increasing Loop Media’s reach and visibility to advertisers in the process. Thus, this deal appears to be a win-win for both parties, at least at first glance.
Let’s dive into this announcement and what investors can make of the news.
LPTV Stock Surges on Microsoft Deal
Any time a company valued at around $100 million is able to ink a strategic partnership with a multi-trillion-dollar tech giant like Microsoft, it’s going to be a big deal for shareholders.
This strategic partnership appears to address the growth goals of both parties involved. While I’m not 100% sure why Microsoft went out and partnered with Loop Media rather than recreating this business model on its own, it’s a sign that Loop’s niche may be one the company dominates and is respected in. Thus, perhaps the validation of this strategic arrangement is worth more than any incremental revenue that may be ascribed to Loop as a result of the deal.
Microsoft’s vast customer and advertiser base could certainly provide a boost to Loop Media in the coming quarters. Accordingly, I’ve added LPTV stock to my list and will be watching for whether this deal translates into anything noteworthy.
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On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
