What Happened?
Shares of advertising data platform LiveRamp (NYSE:RAMP) jumped 21.3% in the afternoon session after the company reported strong first quarter 2025 results, which beat analysts' sales, operating income, and earnings estimates. Its annual recurring revenue also narrowly outperformed Wall Street's estimates. The company recorded a steady growth in both its subscription and marketplace revenue, which together pushed up margins and gave earnings a noticeable lift.
On the other hand, its revenue guidance for next year suggested a significant slowdown in demand and its net revenue retention fell. Zooming out, we think this was a mixed yet decent quarter.
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What The Market Is Telling Us
LiveRamp’s shares are somewhat volatile and have had 12 moves greater than 5% over the last year. But moves this big are rare even for LiveRamp and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was about 2 months ago when the stock dropped 15% on the news that President Trump announced "reciprocal tariffs" on all US imports, set at a minimum rate of 10% or more. Markets reacted negatively to the announcement, reflecting deep concerns among investors about the broader economic implications. The tariffs were likely seen as a significant threat to global trade flows, with the potential to slow economic growth, drive up consumer prices, and spark retaliatory measures.
Wedbush analyst Dan Ives captured the prevailing market anxiety, stating, "We would characterize this slate of tariffs as 'worse than the worst case scenario' the Street was fearing." His comment highlighted how the scope and severity of the tariffs far exceeded Wall Street's expectations, adding a new layer of uncertainty for businesses and investors.
LiveRamp is up 12% since the beginning of the year, and at $33.90 per share, it is trading close to its 52-week high of $35.61 from February 2025. Investors who bought $1,000 worth of LiveRamp’s shares 5 years ago would now be looking at an investment worth $703.34.
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