Jupitermedia's stock was selling for $1.43 per share on July 24, giving the company a market capitalization of $51.53 million. The stock was up 27% from a 52 week low of $1.13 on July 21, but that's not necessarily good news.
Total revenue for Jupitermedia in 2007 was $140.33 million, with the image division being responsible for $108.904 million of that. Revenue declined about 4% in Q1 and analysts expect a further decline when Q2 results are announced on August 2. Investors have also become disenchanted with CEO Alan Meckler's management of the company.
Industry watchers believe the sudden rise is the result of rumors that Jupiter will be sold to someone outside the photo industry before year's-end. A factor that complicates such an acquisition is the $230 million to $270 million of debt on Jupiter's books as a result of Meckler's acquisition binge over the last few years.