Is Trump Campaign Using Factor In Rocket Fuel Inc. (NASDAQ:FUEL)’s Platform?


Rocket Fuel Inc. (NASDAQ: FUEL)’s tools are finding use in Donald Trump’s campaigns. It turns out that the controversial presumptive Republican presidential nominee has begun using web tracking tools to target his campaign messages. Up until recently, Trump relied on social media posts on mainly Facebook and Twitter to pitch his campaign. But he appears to be advancing as the race for president gets tight.

It was CNBC that revealed that Trump’s campaign is running online advertising software developed by Rocket Fuel Inc. (NASDAQ: FUEL) on the candidate’s website. The idea of using the tool is to track the behavior of online users and gain insight on how better to pitch political message to them and potentially convert them into Trump voters.

Because Trump campaign has not been known to be using online tracking tools on its website, the latest development is seen as a major win for Rocket Fuel Inc. (NASDAQ: FUEL). But that win goes beyond the money the company will make directly from providing Trump campaign with online tracking software, but the massive publicity that it is getting in relation to the Trump campaign issue. Trump’s archrival in the 2016 Presidential Election Hillary Clinton had already begun using online advertising and targeting tools.

Political spending

In the lead up to primaries, Rocket Fuel Inc. (NASDAQ: FUEL) increased its staff in Washington D.C. to help it pitch its products to the politicians. Clinton, Bernie Sanders and Ted Cruz are some of the politicians who deployed digital tracking tools for their campaigns early on, but Trump lagged behind. It is not clear the kind of tools the other candidates used for their campaigns before they dropped out. But if any of them used Rocket Fuel’s tools, the company may just have replaced the sold socket by winning the Trump campaign machine.

It is estimated that total spending on digital ads in the 2016 election cycle could total $1 billion. Rocket Fuel is seeking a share of that pie.

Rocket Fuel Inc. (NASDAQ: FUEL) beating results

Rocket Fuel Inc. (NASDAQ: FUEL) surpassed expectations in 1Q2016. Its EPS loss of $0.28 was remarkably better than $0.53 that analysts estimated on the average. Revenue of $104.7 million also exceeded the consensus estimate of $94.2 million.


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