Why Viasat Stock Trounced the Market on Wednesday

A product deployment in a large South American country was the news item providing a healthy lift to Viasat's (NASDAQ: VSAT) shares on Wednesday. Investors traded up the satellite company's stock by more than 3%, providing a pleasant contrast to the 0.3% decline of the S&P 500 (SNPINDEX: ^GSPC) that day.

Getting on the bus

Viasat announced that day that Satélite Norte, a municipal transportation company based in Brazil, is officially the first entity to go live with Viasat's Digital Bus connectivity system. Digital Bus, which provides satellite connections for passengers, is now available on Satélite Norte buses plying routes between the municipality of Goiânia and the city of São Paulo.

Image source: Getty Images.

That isn't exactly a limited route -- the two are more than 500 miles apart, so Viasat's system will get quite the robust workout. What also helps is the popularity of bus transport in the sprawling South American country. With its vast distances and the prohibitive costs and/or lack of routes by air or rail, bus travel is a go-to option for travelers there.

In its press release touting the rollout, Viasat pointed out that Digital Bus "enables bus operators to implement monetization strategies through targeted and dynamic advertising, as well as gather passenger feedback and insights."

A justified reaction

In writing this, Viasat is stressing that its solutions aren't just convenient for users -- they can be monetized too. On top of the positive news of a product going live for the first time, this illustration of the company's competitive advantages is encouraging. I think the bullish investor reaction was fully justified for Viasat.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.