VeriSign Stock: New All-Time High and a Significant Investment Theme
The stock of VeriSign, a leading internet infrastructure service provider, has recently reached a new all-time high. This success is particularly noteworthy as the stock has also surpassed the peak of the dot-com bubble, which is considered a strong buy signal in technical analysis. VeriSign is known for managing the top-level domains “.com” and “.net,” which cover a large portion of the web addresses available on the internet.
Background and Significance
- Business Activity: VeriSign is a US technology company specializing in managing and securing the internet infrastructure. The company is responsible for operating the domain name registry for “.com” and “.net” domains.
- Financial Performance: In the first quarter of 2025, VeriSign achieved a revenue of $402.3 million, surpassing the previous year’s figure. The stock rose 8 percent on Friday to reach a new all-time high, attributed to a better-than-expected revenue report.
- Investor Interest: The stock is also appreciated by prominent investors such as Warren Buffett. Berkshire Hathaway, Buffett’s holding company, owns about 13.8 percent of VeriSign shares.
Market Analysis
- Technical Analysis: The achievement of a new all-time high is often interpreted in technical analysis as a strong buy signal. VeriSign’s stock is in a strong upward trend, indicating further price potential.
- Relative Strength Index (RSI): The stock was recently rated as overbought as the RSI value was above 70. This could indicate an upcoming correction. Nevertheless, the stock has recorded significant price gains in recent months, with a weekly increase of 10.6 percent and an annual increase of nearly 32 percent.
Outlook
The combination of strong financial performance, interest from prominent investors, and a technical upward trend makes VeriSign an interesting investment theme. Despite the current overbought situation, the stock could continue to gain value, especially if the company maintains its positive business development. The announcement of a cash dividend of 77 cents per share could further boost investor interest.