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Digital River (FRA:RIV) Momentum Rank : 0 (As of Jun. 20, 2024)


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What is Digital River Momentum Rank?

Digital River has the Momentum Rank of 0.

For Momentum Rank, we considered the residual momentum concept that was widely studied by Blitz and his colleagues as well as by Nobel Prize laureates Fama and French. However, we did not find any significant differences in the performances of stocks with different ranks of residual momentum. Therefore, we use traditional momentum instead.

Momentum Rank is determined using the standardized momentum ratio and other momentum indicators. The standardized momentum ratio is the average of the performances from 12 months ago to 1 month ago and 6 months ago to 1 month ago, divided by the beta of the stock over the past 12 months. To calculate the momentum ratio today, we would use the average of the two performance numbers.

For momentum, we found that stock price performance does not have a monotonic correlation with the momentum ratio. The stocks with the highest momentum ratios perform worse than those at about the 70th percentile. Therefore, for the momentum rank, we ranked the stocks at about the 70th percentile of the momentum ratio as the highest at 10.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.


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Digital River (FRA:RIV) Business Description

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Digital River, Inc., was incorporated in Delaware in February 1994. The Company provides end-to-end e-commerce and marketing solutions to a variety of companies in software, consumer electronics, computer games, video games, and other markets. It offers its clients, services that enables them to quickly and cost effectively establish an online sales channel capability and to subsequently manage and grow online sales while mitigating risks. Its services include design, development and hosting of online stores and shopping carts, store merchandising and optimization, order management, denied parties screening, export controls and management, tax compliance and management, fraud management, digital product delivery via download, physical product fulfillment, subscription management, online marketing including e-mail marketing, management of affiliate programs, paid search programs, payment processing services, website optimization, web analytics and reporting, and CD production and delivery. Its products and services allow its clients to focus on promoting and marketing their products and brands while leveraging its investments in technology and infrastructure to facilitate the purchase of products through their online websites. Shoppers could browse for products and make purchases online. The Company typically is the seller of record for transactions through its client branded stores. It also processes the buyer's payment as the merchant of record, including collection and remittance of applicable taxes. The Company's e-commerce store solutions range from simple remote control models to more comprehensive online store models. In addition to the services the Company provides, that facilitate the completion of an online transaction, it also offers services designed to increase traffic to its clients' websites and the associated online stores and to improve the sales productivity of those stores. The Company's services include paid search advertising, search engine optimization affiliate marketing, store optimization, multi-variant testing, web analytic services and e-mail optimization. All of the services are designed to help its clients acquire customers more effectively, sell to those customers more often and more efficiently, and increase the lifetime value of each customer. The Company sells its products and services to consumers through the Internet. It sells and markets its services for clients through a direct sales force located in offices in the United States, Europe and Asia Pacific. Some of the competitors of the Company are Art Technology Group, Inc., IBM Corporation, IBM Global Services, Accenture, Inc., GSI Commerce, Inc., asknet Inc., Arvato, ValueClick, Inc. and aQuantive, Inc. The Company is subject to a number of foreign and domestic laws and regulations that affect companies conducting business on the internet.