Latest news with #VeriSign
Yahoo
a day ago
- Business
- Yahoo
VeriSign, Inc. (VRSN): A Bull Case Theory
We came across a bullish thesis on VeriSign, Inc. (VRSN) on Incremental Returns' Substack. In this article, we will summarize the bulls' thesis on VRSN. VeriSign, Inc. (VRSN)'s share was trading at $275.56 as of 2nd June. VRSN's trailing and forward P/E were 33.69 and 31.25 respectively according to Yahoo Finance. Copyright: ralwel / 123RF Stock Photo Verisign (VRSN) exemplifies a business fortified by regulatory structure, technical prowess, and systemic inertia, forming one of the most defensible competitive moats in modern infrastructure. At the heart of its advantage is an exclusive contractual relationship with ICANN and the U.S. Department of Commerce, which effectively ensures its ongoing control over the .com and .net domain registries. The inclusion of a presumptive right of renewal clause in these contracts gives Verisign a near-perpetual license, assuming compliance, creating a regulatory fortress that would be nearly impossible for any competitor to penetrate. Complementing this legal insulation is Verisign's unmatched technical track record, having provided 26 consecutive years of uninterrupted DNS service. This operational excellence not only underpins its credibility but also raises the bar prohibitively high for any aspiring challengers who would need to match Verisign's reliability and security to even be considered viable alternatives. Further reinforcing its position are the immense systemic switching costs. The risks associated with transitioning the core registry functions for .com and .net domains create powerful disincentives for any change, as even minor disruptions could jeopardize global internet stability. While Verisign lacks consumer-facing brand recognition, the ubiquity and credibility of .com and .net domains—holding a combined 46% market share among top-level domains—cement its position in the digital landscape. This brand association with legitimacy and trust creates a self-perpetuating advantage. In totality, Verisign's combination of regulatory entrenchment, technical supremacy, switching frictions, and domain dominance forms a long-lasting competitive shield, suggesting its strategic position is likely secure for decades to come. VeriSign, Inc. (VRSN) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held VRSN at the end of the first quarter which was 41 in the previous quarter. While we acknowledge the potential of VRSN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
VeriSign, Inc. (VRSN): A Bull Case Theory
We came across a bullish thesis on VeriSign, Inc. (VRSN) on Incremental Returns' Substack. In this article, we will summarize the bulls' thesis on VRSN. VeriSign, Inc. (VRSN)'s share was trading at $275.56 as of 2nd June. VRSN's trailing and forward P/E were 33.69 and 31.25 respectively according to Yahoo Finance. Copyright: ralwel / 123RF Stock Photo Verisign (VRSN) exemplifies a business fortified by regulatory structure, technical prowess, and systemic inertia, forming one of the most defensible competitive moats in modern infrastructure. At the heart of its advantage is an exclusive contractual relationship with ICANN and the U.S. Department of Commerce, which effectively ensures its ongoing control over the .com and .net domain registries. The inclusion of a presumptive right of renewal clause in these contracts gives Verisign a near-perpetual license, assuming compliance, creating a regulatory fortress that would be nearly impossible for any competitor to penetrate. Complementing this legal insulation is Verisign's unmatched technical track record, having provided 26 consecutive years of uninterrupted DNS service. This operational excellence not only underpins its credibility but also raises the bar prohibitively high for any aspiring challengers who would need to match Verisign's reliability and security to even be considered viable alternatives. Further reinforcing its position are the immense systemic switching costs. The risks associated with transitioning the core registry functions for .com and .net domains create powerful disincentives for any change, as even minor disruptions could jeopardize global internet stability. While Verisign lacks consumer-facing brand recognition, the ubiquity and credibility of .com and .net domains—holding a combined 46% market share among top-level domains—cement its position in the digital landscape. This brand association with legitimacy and trust creates a self-perpetuating advantage. In totality, Verisign's combination of regulatory entrenchment, technical supremacy, switching frictions, and domain dominance forms a long-lasting competitive shield, suggesting its strategic position is likely secure for decades to come. VeriSign, Inc. (VRSN) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held VRSN at the end of the first quarter which was 41 in the previous quarter. While we acknowledge the potential of VRSN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
Wix (WIX) Reports Earnings Tomorrow: What To Expect
Website design and e-commerce platform provider (NASDAQ:WIX) will be announcing earnings results tomorrow before the bell. Here's what to expect. Wix met analysts' revenue expectations last quarter, reporting revenues of $460.5 million, up 14% year on year. It was a decent quarter for the company, with revenue guidance for next quarter meeting analysts' expectations. Is Wix a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Wix's revenue to grow 12.4% year on year to $471.9 million, in line with the 12.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.66 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Wix has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 0.7% on average. Looking at Wix's peers in the e-commerce software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Shopify delivered year-on-year revenue growth of 26.8%, beating analysts' expectations by 1.1%, and VeriSign reported revenues up 4.7%, in line with consensus estimates. Shopify traded down 3% following the results while VeriSign was up 8%. Read our full analysis of Shopify's results here and VeriSign's results here. There has been positive sentiment among investors in the e-commerce software segment, with share prices up 23.7% on average over the last month. Wix is up 24.8% during the same time and is heading into earnings with an average analyst price target of $231.48 (compared to the current share price of $182.77). Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-05-2025
- Business
- Yahoo
Where Will VeriSign Stock Be in 3 Years?
VeriSign is the gatekeeper to the internet's most popular top-level domains. It's still gaining new registrations and maintaining a healthy renewal rate. It's well-insulated from tariffs, trade wars, and other macro headwinds. 10 stocks we like better than VeriSign › VeriSign (NASDAQ: VRSN) isn't considered a high-growth stock. But over the past three years, the domain registry operator's shares rallied 66% as the S&P 500 advanced 37%. Let's see why this oft-overlooked stock beat the market -- and where it might head over the next three years. VeriSign operates the authoritative domain name registries for the internet's two most popular top-level domains: .com and .net. It's also the main subcontractor for the .edu and .jobs domains. VeriSign sells its domain names to registrars, like GoDaddy and Network Solutions, which are responsible for selling them to website operators. So as long as businesses, organizations, governments, and individuals keep registering and renewing their websites under those popular domains, VeriSign's revenue and profits will continue to rise. VeriSign's simple business model seems evergreen, but it might face two long-term challenges. First, mobile apps and social networks might reduce the importance of dedicated websites with easy-to-remember addresses. Second, antitrust regulators could drive it to loosen its grip on its top-level domains. But those potential challenges aren't sinking VeriSign's business yet. From 2014 to 2024, VeriSign's year-end .com and .net registrations rose from 130.6 million to 169 million as its renewal rate stayed in the low 70s. In the first quarter of 2025, its .com and .net registrations increased to 169.8 million as its renewal rate rose 80 basis points year over year to 74%. Therefore, website domains are still relevant in the age of mobile apps and social networks. Last August, VeriSign renewed its two .com agreements with the U.S. government for another six years -- even though some politicians and advocacy groups adamantly opposed those deals and demanded an antitrust probe into its control of the .com and .net domains. Those renewals should insulate VeriSign from antitrust headwinds for the foreseeable future. From 2021 to 2024, VeriSign's revenue and earnings per share (EPS) both increased at a compound annual growth rate (CAGR) of 5%. It also bought back 13% of its shares over the past three years. It maintained that stable growth rate even as inflation and rising interest rates rattled the global markets. That wasn't surprising, since businesses generally won't stop registering and renewing their domains just to save a few dollars during an economic downturn. It also became a popular safe haven stock this year, since its business probably won't be disrupted by the Trump administration's tariffs, escalating trade wars, and other macro challenges. That might be why Berkshire Hathaway accumulated more shares of VeriSign over the past year -- even as it sold a lot of its other top stocks to raise fresh cash and buy more short-term Treasuries. VeriSign's insiders also bought nearly 11 times as many shares as they bought over the past 12 months. That warmer insider sentiment suggests it has a lot more room to run. From 2024 to 2027, analysts expect VeriSign's revenue and EPS to grow at CAGRs of 5% and 10%, respectively. Assuming it matches those estimates, grows its EPS by another 10% in 2028, and still trades at 33 times forward earnings, its stock price could rise 34% to about $386 over the next three years. However, VeriSign's valuations are looking a bit frothy relative to its growth potential -- which suggests too many investors are still scooping it up as a "tariff-proof" stock. Assuming it grows at the same aforementioned rate and trades at a more reasonable 20 times forward earnings by 2028, its stock price might actually decline 18% to $234. So while VeriSign's business model seems rock-solid, a bit too much growth and safety might already be baked into its premium valuations. It might keep commanding a higher valuation as long as investors are nervous about tariffs and trade wars, but it could quickly lose its luster if any of those headwinds dissipate. So while VeriSign had a great run and could be a sound long-term play, I believe its stock will either trade sideways or slip lower over the next three years, instead of staying ahead of the S&P 500. Before you buy stock in VeriSign, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and VeriSign wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $614,911!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $714,958!* Now, it's worth noting Stock Advisor's total average return is 907% — a market-crushing outperformance compared to 163% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 5, 2025 Leo Sun has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway and VeriSign. The Motley Fool recommends GoDaddy. The Motley Fool has a disclosure policy. Where Will VeriSign Stock Be in 3 Years? was originally published by The Motley Fool
Yahoo
11-05-2025
- Business
- Yahoo
Is VeriSign, Inc. (VRSN) the Best Stock to Buy According to Jim Simons' Renaissance Technologies?
We recently published a list of In this article, we are going to take a look at where VeriSign, Inc. (NASDAQ:VRSN) stands against other best stocks to buy according to Jim Simons' Renaissance Technologies. Even after his passing in 2024, billionaire investor and mathematician Jim Simons remains known as the 'Quant King' of hedge funds due to the extraordinary success of Renaissance Technologies, his quantitative trading firm based in New York. After years of researching the finance industry, Simons realized the untapped potential of employing quantitative analysis to capitalize on market inefficiencies. This insight led him to develop a data-driven investment strategy of analyzing market behavior solely using statistical and mathematical models. By identifying subtle, non-random patterns in financial data, the quant genius predicted future stock movements and generated impressive returns. Although it is closed to outside investors, Jim Simons' secretive Medallion hedge fund, a flagship of Renaissance, has produced ground-breaking results since its inception. The Medallion Fund raked in impressive returns of 56.6% and 74.6% during the early 2000s dot-com crash and the global financial crisis between 2007 and 2011. The fund has maintained a substantial annual return of 31.5% since its first two years of operation. At the time of his death, Simons was worth $31.4 billion, ranking him among the world's wealthiest individuals, thanks to the strong market performance of the Medallion Fund and Renaissance. READ ALSO: and . Renaissance Technologies' computer-driven powerhouse came off to a great start after a stellar performance in 2024. The Renaissance Institutional Diversified Alpha Fund has gained 9.05% as of February, continuing to build on its impressive 2024 return of 15.6%, which was its best since its inception in 2021. Meanwhile, the Renaissance Institutional Equities Fund has had its best start in over ten years, rising 11.85% in the first two months of 2025. Both funds are allowed to maintain sizable individual stock positions in addition to using stock index futures and options to help manage risk. However, the firm warns that it may be difficult to quickly unwind these sizable holdings without impacting market prices. For this list, we picked stocks from Renaissance Technologies' 13F portfolio as of the end of the fourth quarter of 2024. These equities are also popular among elite hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Jim Simons of Renaissance Technologies VeriSign, Inc. (NASDAQ:VRSN) is a multinational domain name registry and network infrastructure services supplier. The company remains the only registry for the .com and .net domains. Back in November 2024, VeriSign, Inc. (NASDAQ:VRSN) extended its registry agreement with the Internet Corporation for Assigned Names and Numbers (ICANN) for the .com domain. The company will continue to operate the .com registry until November 30, 2030. VeriSign, Inc. (NASDAQ:VRSN)'s first-quarter 2025 earnings surpassed analyst expectations, coming in at $2.10 per share, compared to the projected $2.07. Revenue for the company grew 4.7% year-over-year to $402 million, just above the projected $396.52 million. Moreover, VeriSign's net income increased from $194 million to $199 million during the same quarter last year, indicating robust operational performance. The company also introduced a quarterly cash dividend of $0.77 per share. Looking ahead, VeriSign, Inc. (NASDAQ:VRSN) maintains a cautious outlook in the face of macroeconomic uncertainties, projecting revenue for 2025 to range between $1.635 billion and $1.650 billion. With noticeable advancements in domain registration trends, the company continues to focus on expanding its portfolio of domain names and enhancing its marketing initiatives. Overall, VRSN ranks 5th on our list of best stocks to buy according to Jim Simons' Renaissance Technologies. While we acknowledge the potential for VRSN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than VRSN but trades at less than 5 times its earnings, check out our report about this . READ NEXT: and . Disclosure: None. This article is originally published at . Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
