DivX makes products and services designed for media applications, such as web video players and compression-decompression software. Jordan Grenhall is its co-founder and CEO. He attributes the company's success this past quarter to good performance by all DivX customers across the board.
Greenhall says DivX's goal is to take internet video and make it playable on any kind of device, whether it be a DVD player or a cell phone. In fact, the company this morning announced a deal with Samsung for that very purpose. With the cell phone market being much larger than that of DVD players, this type of move could mean big profits for DivX.
Did it matter that Google, which accounts for 16% of DivX's business, bought YouTube? "It's, I think, largely a positive," Greenhall says. "At the end of the day, we look at 'GooTube' as a fantastic way to continue to have consumers expand their footprint into the internet. So far we haven't really been able to tap into all the potential value of that relationship, but the fact that we work so well with Google, I think, portends well for us working with the guys at YouTube."
Given the trouble Cramer had with Syntax-Brillian, he asked Greenhall if the company had any yet-to-be-announced offerings planned. Greenhall confirmed that nothing was in the works.
That gave Cramer the clearance to give two thumbs up on DivX. "This stock's going higher than it did after hours," he says. "Up 10% is not enough."
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