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XOOM Attracts Long-term Investors

Xoom Corp (XOOM), as a new IPO in 2013, provides customer-to-customer online money transfer service. You can easily transfer from Xoom to Walmart over the internet or via mobile. Once the IPO was issued, the demand has large volume. The recent earning report also shows their strong guidance for 2013 year. The stock currently trade $18.36 in NASDAQ, and their target to reach $27 as target.

However, as the profit gaining section: Investors will be more patient. Marketing and operation cost are one of the high percentage of revenue. Also regarding to service review, Xoom Corp service operation was not isolated and mature compare with other firm. Many fraud and errors have not been responsed.

General speaking, for investor to long Xoom, it will takes long time to see profit gain. If Xoom keeps growing stably, it has opportunity to get acquired by large financial institution. Banks nowadays are struggling for finance situations, acquisition XOOM is a good deal for them. But again, it might also takes few years and depends on stability for XOOM service.  

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