Ancestry.com's Family Tree Keeps Growing
Jul 5th 2012 9:51AM
Updated Jul 5th 2012 11:32AM
Folks apparently are still digging into the roots of their family trees.
Ancestry.com (NAS: ACOM) revealed earlier this week that it has hit the juicy mark of 2 million active subscribers. This is important, and not just because it's a nice, round number. The leading genealogy website had closed out its most recent quarter with nearly 1.9 million subscribers, so this week's press release celebrating 2 million active members -- and handing the 2 millionth member a free lifetime subscription -- let investors know that Ancestry.com is still posting healthy sequential growth.
The news comes after Ancestry.com went through a volatile month of May. Shares of the company took a hit when Comcast's (NAS: CMCSA) (NAS: CMCSK) NBC announced that it wouldn't be renewing Who Do You Think You Are?, a primetime show that partnered with Ancestry.com to dig into the lineages of intrigued celebrities, for a fourth season. The stock roared back when reports indicated the company may be putting itself up for sale.
Again, here is where this week's milestone matters. If cynics figured that the website was seeking out a suitor because its popularity was peaking, blasting through 2 million active members proves those naysayers are wrong.
This doesn't mean Ancestry.com isn't an attractive acquisition target. If anything, proof this week that it continues to expand its reach will make it more lucrative for dot-com giants that are looking to expand beyond ad-based revenue. If you don't think Facebook (NAS: FB) or Google (NAS: GOOG) would be strong matches, consider how many more premium subscribers the very profitable Ancestry.com could draw with companies that reach hundreds of millions of users daily.
Then again, given this week's welcome milestone, it's not as if Ancestry.com should be in any rush to marry itself off.
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At the time this article was published The Motley Fool owns shares of Facebook, Google, and Ancestry.com. Motley Fool newsletter services have recommended buying shares of Ancestry.com and Google. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.Longtime Fool contributor Rick Munarriz calls them as he sees them. He does not own shares in any of the stocks in this story. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.
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