Frederik van der Kooi, Chairman of the Board of Directors said, "I am pleased that the Board of Directors agreed that this move positions us to unlock significant shareholder value by streamlining our corporate structure, enhancing our capital management flexibility and aligning our capital markets presence with our long-term strategic ambitions. As we move forward, Criteo remains deeply committed to its teams in France and its role in the French technology and AI innovation ecosystem." Following approval b ...

Group 1 - The stock markets have seen a significant underperformance of small- and mid-cap stocks compared to large-cap stocks this year [1] - There is a general consensus among analysts regarding the trends affecting these stocks [1] Group 2 - Gary Alexander has extensive experience in covering technology companies and has been involved with seed-round startups [1] - He has been a contributor to Seeking Alpha since 2017 and has been quoted in various web publications [1]

Summary of Key Points from J.P. Morgan's US Internet 2026 Outlook Industry Overview - The report focuses on the **US Internet** sector, providing insights into market performance, macroeconomic factors, and company-specific forecasts for 2026. Core Insights and Arguments 1. **2025 Performance Recap**: - The internet sector outperformed the S&P 500 by 17% in 2025, with average performance across market caps showing significant variation: - Large Cap: +19% - Mid-Cap: +42% - Small Cap: +21% - Smaller Cap (<$2B): -16% [12][13] 2. **2026 Macro Outlook**: - J.P. Morgan economists estimate a **35% risk of recession** in 2026, with expectations of resilient global growth driven by fiscal stimulus and capital expenditure [19][23]. - Key economic indicators include: - GDP Growth: 1.8% in 2026 - Inflation: Expected to remain above 3% CPI - Unemployment: Projected to peak at 4.5% in Q1 2026 [21][19]. 3. **Investment Recommendations**: - **Top Picks for 2026** include: - Alphabet (Overweight, $385 PT): Growth driven by AI and cloud services [46]. - Amazon (Overweight, $305 PT): Expected growth in AWS and retail segments [51]. - DoorDash (Overweight, $300 PT): Anticipated GOV growth of 18% CAGR from 2025-2028 [57]. - Spotify (Overweight, $805 PT): Projected revenue growth driven by premium subscriptions [66]. 4. **AI and Cloud Growth**: - AI is expected to significantly drive cloud growth, with Google Cloud projected to grow in the mid-40% range and AWS adding the highest estimated revenue in 2026 [101][102]. - The report highlights the importance of AI in enhancing operational efficiencies and driving revenue growth across various sectors [78]. 5. **Valuation Metrics**: - The S&P 500 is projected to have a price target of **$7,500** by the end of 2026, suggesting a 9% upside [26]. - Internet companies are trading at an average of **10.2x 2027E EV/EBITDA**, with expected revenue growth of approximately **13% CAGR** from 2025 to 2027 [40]. Additional Important Insights 1. **Market Dynamics**: - The report discusses the competitive landscape in the AI space, noting that leading model developers like Google and OpenAI are pushing the frontier, but competition remains intense [89][94]. - The potential for AI-driven advertising and e-commerce growth is highlighted, with expectations for significant market share shifts in the online ad market [112]. 2. **Company-Specific Catalysts**: - Alphabet's AI tools are expected to enhance productivity and revenue, while Amazon's AWS is set to double its capacity by 2027 [56][88]. - DoorDash is focusing on expanding its marketplace and improving unit economics, while Spotify is ramping up its free cash flow and operating margins [60][68]. 3. **Key Questions for 2026**: - The report raises critical questions regarding AI monetization, the impact of AI on cloud growth, and the potential for disruption in various sectors, including travel and e-commerce [76][124]. This summary encapsulates the essential insights and projections for the US Internet sector as outlined in the J.P. Morgan report, providing a comprehensive overview of the anticipated trends and investment opportunities for 2026.

Criteo S.A. (NASDAQ:CRTO) is one of the best falling stocks to buy, according to Wall Street analysts. On November 26, Morgan Stanley analyst Matthew Cost maintained a Hold rating on Criteo S.A. (NASDAQ:CRTO) and set a price target of $36.00. His cautious stance reflects a balanced view of the company’s near term prospects, even with recent signs of operational improvement. Criteo’s (CRTO) Mixed Analyst Ratings Highlight Growth Potential Amid Strong Earnings Copyright: welcomia / 123RF Stock Photo Earli ...

Industry Overview - The Internet Software & Services industry is closely tied to the economy, with initial estimates declining due to concerns over tariffs, inflation, and interest rates, although the economy has remained relatively stable [1] - The industry is characterized by a diverse range of players, which leads to some dissonance, but overall valuations have decreased significantly, making it attractive for investors [4] Key Themes - Technology adoption is crucial for growth, with companies leveraging AI and cloud services to stay competitive, leading to increased demand for software and services [6] - The U.S. economy is performing better than expected, despite concerns about job growth and geopolitical tensions affecting oil prices and supply chains [6] - Subscription-based models are becoming more prevalent, providing stability and allowing companies to retain customers and adjust pricing as needed [7] Market Performance - The Zacks Internet – Software & Services Industry has outperformed the broader Zacks Computer and Technology Sector and the S&P 500, returning 33% over the past year compared to 27.6% and 16.3% respectively [11] - The industry is currently trading at a forward P/E ratio of 223.7X, which is slightly above its median level, indicating that shares are not overvalued on average [14] Company Highlights Criteo S.A. (CRTO) - Criteo operates a commerce media platform that connects advertisers with retailers and publishers, leveraging AI to enhance its services [16][20] - The company has maintained a client retention rate close to 90% and reported a 11% growth in Retail Media ex-TAC contributions [18][19] - Despite a challenging market, Criteo's shares have decreased by 53.5% over the past year, but earnings estimates for 2025 and 2026 have shown positive revisions [23] NetEase, Inc. (NTES) - NetEase is focused on online services, primarily in gaming, which is its largest revenue contributor, supported by a strong in-house R&D team [26][27] - The company has seen significant success with popular game titles and is expanding its international business with new content [28][29] - NetEase's shares have gained 59% over the past year, with positive earnings and revenue growth expected for 2025 and 2026 [29]

Group 1 - Criteo S.A. (CRTO) has a mixed reputation among internet advertisers, particularly due to its use of browser cookies for ad targeting, which has faced criticism from major companies like Apple [1] - In 2017, Apple publicly criticized Criteo's advertising practices, highlighting concerns over privacy and data usage [1] Group 2 - The article does not provide specific financial data or performance metrics related to Criteo S.A. [1]

Core Insights - Criteo S.A. (CRTO) has a mixed reputation among internet advertisers, particularly due to its use of browser cookies for ad targeting, which has drawn criticism from major companies like Apple [1]. Group 1: Company Overview - Criteo S.A. is known for its advertising technology, specifically in the realm of targeted advertising through browser cookies [1]. Group 2: Industry Context - The advertising industry is facing scrutiny over privacy concerns, with significant players like Apple taking a stand against practices such as those employed by Criteo [1].

Company Overview - Criteo S.A. is a global technology company specializing in digital advertising, focusing on personalized online display advertisements and utilizing data analytics to optimize ad performance [1] Recent Performance - Over the past 30 days, Criteo's stock has risen by approximately 8.84%, indicating strong investor confidence and positive market sentiment [2] - In the last 10 days, the stock experienced a slight decline of about 5.81%, which may present a strategic entry point for investors [2] Growth Potential - Criteo has an estimated stock price growth potential of 80.97%, driven by strategic initiatives and market positioning [3] - Analysts have set a target price of $39 for Criteo, suggesting substantial room for stock appreciation from current levels [5] Financial Health - Criteo's Piotroski Score is 8, reflecting strong financial health, profitability, leverage, liquidity, and operational efficiency [4][6] - The high Piotroski Score indicates that Criteo is well-managed and financially stable, making it an attractive investment option [4]

Core Insights - The emergence of generative AI models has led to a revolution in the marketing industry, with many entrepreneurs exploring AI-driven advertising and marketing solutions [1] - Criteo, a global e-commerce data service company, aims to leverage its data advantages to empower the Business Intelligence sector and assist Chinese companies in expanding internationally [1][4] - The concept of Agentic Commerce is gaining traction, allowing users to shop, compare, negotiate, and transact through AI agents [2][3] Company Overview - Criteo started as a movie recommendation engine and has evolved into a global e-commerce data service provider, currently serving 17,000 clients [1] - Criteo has maintained double-digit growth in China over the past three years, working with major clients such as Alibaba and Midea Group [1] - The company views China as a crucial market and aims to utilize AI capabilities to help Chinese enterprises go global [1] Industry Trends - The rise of AI agents in commerce is transforming consumer behavior, with 85% of surveyed users in the US and UK utilizing AI tools for shopping [3] - AI recommendations are particularly effective for high-frequency purchase items like clothing and electronics, while adoption rates for durable goods are lower [3] - Criteo's integration of AI models with e-commerce data aims to enhance the precision of consumer recommendations and reduce the likelihood of AI hallucinations [4] Recommendations for Retailers - Retailers are encouraged to adapt their services to align with the evolving consumer reliance on AI tools [5] - Companies should make timely decisions regarding participation in AI marketing to avoid losing competitive advantage [5]

Financial Performance - Revenue for Q3 2025 was $469.66 million, a 2% increase from $458.89 million in Q3 2024[17] - Gross profit for Q3 2025 reached $256.48 million, up from $231.93 million in Q3 2024, reflecting an increase of 10.6%[17] - Net income for Q3 2025 was $40.08 million, compared to $6.14 million in Q3 2024, representing a significant increase of 552%[17] - Criteo reported a net income of $103.008 million for the nine months ended September 30, 2025, compared to $42.769 million for the same period in 2024, representing a year-over-year increase of approximately 141%[24] - Net income attributable to shareholders for the nine months ended September 30, 2025, was $96.96 million, up from $40.48 million in the same period of 2024, indicating a strong performance[86] - Basic earnings per share for the nine months ended September 30, 2025, was $1.82, compared to $0.74 for the same period in 2024, showing substantial growth[86] - Total revenue for the nine months ended September 30, 2025, was $1.40 billion, an increase from $1.38 billion in the same period of 2024[98] Assets and Liabilities - Total current assets decreased to $1.01 billion as of September 30, 2025, down from $1.22 billion at the end of 2024[15] - Total liabilities decreased to $891.35 million as of September 30, 2025, compared to $1.19 billion at the end of 2024[15] - Cash and cash equivalents were $255.01 million as of September 30, 2025, down from $290.69 million at the end of 2024[15] - The company’s total assets decreased to $2.06 billion as of September 30, 2025, from $2.27 billion at the end of 2024[15] - Trade accounts receivables decreased to $592.14 million from $829.46 million at the end of 2024, with a net book value of $568.73 million[48] - Noncurrent assets as of September 30, 2025, totaled $286.35 million, an increase from $265.61 million as of December 31, 2024[100] Equity and Retained Earnings - Retained earnings increased to $661.50 million as of September 30, 2025, up from $571.74 million at the end of 2024[15] - Criteo's total equity as of September 30, 2025, was $1.170 billion, with a retained earnings balance of $661.496 million[22] - Total equity increased to $1.17 billion as of September 30, 2025, up from $1.08 billion at the end of 2024, an increase of 8.2%[15] Operating Expenses - Operating expenses for Q3 2025 totaled $204.85 million, a decrease from $222.33 million in Q3 2024[17] - Research and development expenses for Q3 2025 were $67.68 million, down from $85.29 million in Q3 2024, a reduction of 20.7%[17] - Total operating lease expense for the nine months ended September 30, 2025, was $27,086,000, down 13.5% from $31,467,000 in 2024[56] - Lease expense for the three months ended September 30, 2025, was $9,313,000, a decrease of 10.5% compared to $10,410,000 for the same period in 2024[56] Cash Flow - The company generated net cash provided by operating activities of $150.544 million for the nine months ended September 30, 2025, up from $88.707 million in the prior year, indicating a significant improvement in cash flow[24] - The company incurred a net cash used in investing activities of $69.123 million for the nine months ended September 30, 2025, compared to $58.966 million in the same period of 2024[24] - Criteo's cash and cash equivalents at the end of the period were $255.335 million, down from $283.990 million at the end of September 2024[24] Share Repurchase and Compensation - The board of directors authorized an extension of the share repurchase program to up to $805 million of the company's outstanding American Depositary Shares on January 31, 2025[22] - The company repurchased 3,643,186 shares at a weighted average price of $31.7, impacting the treasury stock balance[22] - Criteo's share-based compensation expense for the nine months ended September 30, 2025, was $52.037 million, down from $82.193 million in the previous year[24] - Total equity awards compensation expense for the nine months ended September 30, 2025, was $52,037,000, a decrease of 36.7% compared to $82,193,000 in 2024[62] Tax and Legal Matters - The provision for income taxes for the nine months ended September 30, 2025, was $27.7 million, compared to $15.0 million for the same period in 2024, reflecting a significant increase[84] - The company recognized a probable loss of $1.5 million related to a legal settlement in the third quarter of 2025[94] Segment Performance - Retail Media segment revenue reached $67.11 million, up 10% from $60.77 million in the same period last year[42] - Performance Media segment revenue was $402.55 million, slightly up from $398.13 million year-over-year[42] - Contribution ex-TAC for Q3 2025 was $288.13 million, a 8% increase compared to $266.10 million in Q3 2024[44] - Revenue from Retail Media for the three months ended September 30, 2025, was $67.11 million, up from $60.77 million in 2024, reflecting a growth of approximately 5.5%[98] - Revenue from Commerce Growth for the nine months ended September 30, 2025, was $1.13 billion, slightly up from $1.13 billion in 2024, indicating stable performance[98] Future Plans - The company plans to redomicile from France to Luxembourg, which is expected to replace its American Depositary Share structure with ordinary shares directly listed on Nasdaq[102]