Millennial Media (NYSE:MM)

CAPS Rating: 2 out of 5

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Player Avatar Mega (99.97) Submitted: 9/26/2012 5:22:54 PM : Underperform Start Price: $14.29 MM Score: +11.37

At 250x forward earnings, they are much more expensive than competitors like Google, Yahoo, Apple, etc. But unlike those companies and Facebook, they are a pure advertising company without their own content platform. That seems like a major competitive problem! MM's price is based on the assumption they can achieve margins comparable to elite content/advertising competitors and that is not going to happen.

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