Back to top

Image: Shutterstock

SNCR Stocks Climbs 12% in 3 Months: Is Holding the Right Move?

Read MoreHide Full Article

Synchronoss Technologies (SNCR - Free Report) shares have returned 12.2% over the past three months, outperforming the Zacks Computer and Technology sector and the  Internet - Software industry’s declines of 11.6 % and 6.5%, respectively.

It has also outperformed its industry peers, including Appian (APPN - Free Report) , BlackBerry (BB - Free Report) and Five9 (FIVN - Free Report) .

Over the same time frame, shares of Appian, BlackBerry and Five9 have fallen 17.8%, 20.3% and 38.6%, respectively.

The recent rally in SNCR shares can be attributed to a strong fourth-quarter 2024 performance, supported by growing cloud subscriber base, particularly its Personal Cloud solution. Long-term contract extensions and operational stability further validate Synchronoss’ improving fundamentals. Together, these factors signal rising market confidence and support the stock's upward movement.

Expanding Cloud Market Creates Tailwinds for SNCR

Synchronoss Personal Cloud is a robust software platform designed to help global network operators and mobile insurance providers boost revenues, deepen customer engagement and enhance digital security. With AI-powered features that enrich the user experience, SNCR enables operators to unlock revenue opportunities, reduce innovation costs and build stronger customer loyalty through seamless and secure content management.

The company’s recent performance underscores the growing relevance of its cloud solutions. In the fourth quarter of 2024, Synchronoss reported a 6% year-over-year increase in cloud subscribers, a key contributor to overall revenue growth. This uptick reflects rising demand for its Personal Cloud services, bolstered by long-term customer contracts, partnerships and consistent product innovation. SNCR expects the global Personal Cloud market to grow, seeing a compound annual growth rate of 25% through 2029.

Further reinforcing its position in the market, Synchronoss launched an enhanced version of its Personal Cloud platform in the third quarter of 2024. The update introduced features such as “Memories” and the AI-enhanced “Genius,” enabling users to curate, share and optimize digital content effortlessly. These enhancements aim to boost user engagement and reduce churn for service providers.

Adding to its innovation pipeline, SNCR recently launched Capsyl Cloud, a turnkey personal cloud platform designed for mobile operators and broadband service providers. This solution enables rapid deployment of secure and scalable cloud services, enhancing user engagement and creating revenue opportunities.

Growing Partner Base to Drive Synchronoss’ Performance

SNCR continues to solidify its market position through partnerships. The company collaborates with leading telecom providers such as AT&T, Verizon and SoftBank to deliver its Personal Cloud solutions, positioning it for growth.

A key highlight is Synchronoss’ growing relationship with SoftBank, which opens doors to the broader integration of its cloud platform across a diverse portfolio of SoftBank-owned brands and services, boosting the company’s international footprint and growth potential.

Further strengthening its domestic footprint, SNCR secured a three-year contract extension in December 2024 with a major U.S. telecom operator. This extension not only highlights the trust of major providers in Synchronoss but also provides predictable revenue streams and long-term stability.

SNCR’s Revenue & Earnings Estimates Show Mixed Trend

The Zacks Consensus Estimate for second-quarter 2025 revenues is pegged at $42.94 million, indicating a 1.2% year-over-year decline.

The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at 39 cents per share, up by a penny over the past 30 days. The consensus mark indicates a year-over-year decrease of 18.75%.

The Zacks Consensus Estimate for 2025 revenues is pegged at $174.40 million, indicating a year-over-year increase of 0.46%.

The consensus mark for 2025 earnings is pegged at $1.58 per share, up 8.2% over the past 30 days, implying a year-over-year decline of 3.07%.

Conclusion: Warrants a Hold

Given Synchronoss’ steady momentum in cloud subscriber growth, expanding partnerships with major telecom providers and its investments in AI-driven product innovation, the company shows promising long-term potential. However, a mixed trend in analyst estimates introduces a note of caution. Based on this information, it is currently recommended for investors to take a prudent hold position.

Currently, SNCR carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Published in