Plus500 shares soar 5.4% on Wednesday following release of its Annual Report. Plus500’s secret sauce?
It has now been a couple of days since investors got their hands on Plus500’s 2013 Annual Report, and it seems like they like what they see. With no ‘new’ news out, Plus500’s shares (LON:PLUS) went on another tear on Wednesday, leaping to touch an all-time high of £6.09 per share before settling to close at £5.84, still up 5.4% for the day.
At its current share price, Plus500 has a valuation of more than $1.1 billion. Plus500 has seen its share price rise by about 5x since its July 2013 IPO.
Plus500’s secret sauce?
Well in part, it seems to be simply a 50+% increase in Plus500’s marketing budget.
Plus500’s Annual Report reveals that the company spent $32.5 million in Advertising in 2013, up 53% from $21.2 million in 2012, by itself accounting for the majority of Plus500’s increase in expenses in 2013. And it clearly has put that money to good use, with Plus500 revenues nearly doubling during the year to $115 million, including a $50 million Q4.
Plus500 share price chart since IPO. Source: Google Finance.