Shares of Synchronoss Technologies (NASDAQ: SNCR) were up 11.8% as of 3:30 p.m. EDT Wednesday, despite a lack of company-specific news. To be clear, there were no new press releases, SEC filings, analyst upgrades, or industry reports that might otherwise drive today's climb.
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It's worth noting, however, that Synchronoss stock had plunged nearly 30% over the past week going into yesterday's close. Much of that decline came last Wednesday, March 13, 2019 when the company posted underwhelming fourth-quarter results relative to Wall Street's expectations.
It likely didn't help that Synchronoss had more than doubled from its 52-week low (set last August) going into that report. And with its $280 million market cap as of this writing, it's undoubtedly prone to the outsized volatility that tends to come with investing in small-cap stocks.
As I pointed out following last week's earnings release, however, management also struck a particularly optimistic tone during the call: CFO David Clark insisted Synchronoss had "stabilized and reset [its] core business" in 2018, making "a great deal of progress to improve operating leverage and profitability, drive free cash flow, and reduce debt."
What's more, Synchronoss called for 2019 revenue to increase 5% to 9%. That won't be dropping the jaws of many growth-hungry investors anytime soon, but it was at least in line with the rates most analysts were modeling for the coming year.
In any case, I think Synchronoss investors would do well to focus first on the underlying health of the business. If it keeps making progress over the long term, its share price should only continue to follow suit.
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