Digital River Inc.DRIV

Morningstar Rating

Stock Research and Analysis

by Larry Witt, CFA

Digital River provides digital and physical product fulfillment for thousands of software developers, high-tech manufacturers, and retailers. Benefiting from the trends in e-commerce, Digital River has generated solid revenue growth, operating margins, Read more

Bulls Say

By providing a wide range of services, including digital and physical product fulfillment, Digital River is well positioned to benefit from the growth in e-commerce.

As broadband penetration and consumer acceptance of digital downloads increase, Digital River will continue to benefit from the shift from physical to electronic delivery of software.

Digital River has more than 40,000 clients including Microsoft MSFT and Electronic Arts ERTS.

Digital River's partners spend heavily on advertising to promote their brands. Digital River benefits from this advertising through increased Web sales but does not share in the advertising costs. Read more

Bears Say

About one-fourth of sales are derived directly from Symantec. Symantec is ending its relationship with the company, effective June 2010.

The competition for Digital River's peripheral services--like Web site hosting and online marketing--is becoming increasingly fierce.

As e-commerce--and digital delivery of software in particular--becomes more prevalent, Digital River's clients may decide to insource their e-commerce solutions.

Digital River is exposed to consumer spending. Therefore, the company's financial results could suffer in an economic downturn. Read more

Strategy

To attract and retain as many clients as possible, Digital River continually invests to increase the quality and quantity of its services. Once a client has chosen Digital River to manage its e-commerce Read more

Management

Chairman and CEO Joel A. Ronning founded Digital River in 1994. Although we frown upon Ronning acting as both chairman and CEO, we are pleased that the company appointed a lead independent director, Thomas F. Madison, in 2005. Ronning's total compensation Read more

Profile

Digital River provides outsourced e-commerce solutions to thousands of software developers, high-tech manufacturers, and retailers. The company offers the design, development, Read more

First Name

Last Name

Email Address

Zip Code

Create Password

Verify Password

(6-15 characters; case sensitive)

What is your occupation or job title?

Select...

Your registration indicates agreement to the terms of use.

Daily Dividend Reports: PEP, ADP, L, AVP, PKY
Watch more