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Demand Media shares surge to biggest gains since market debut as investors bet on turnaround
NEW YORK (AP) ' Demand Media's stock is soaring Friday after the online content publisher's fourth-quarter earnings and outlook for this year gave investors hope that it is starting to recover from changes to Google's Internet search formula. Those changes had diminished traffic sent to its websites.
The surge marks the biggest gain in Demand Media's stock since it began trading publicly more than a year ago.
Demand Media is trying to adjust by putting more emphasis on longer, more in-depth articles that are more likely to rank high on Google's search results. It is also producing more video on Google-owned YouTube.
In an encouraging sign, the company issued projections that were roughly in line with average analysts' expectations.
The company's stock jumped $1.94, or 33 percent, to $7.88 in afternoon trading Friday.