Why Magnite Stock Was Sinking at Double-Digit Rates This Week

Core Viewpoint - The remarks made by a senior executive at Walt Disney regarding its relationship with Magnite have negatively impacted Magnite's stock performance, leading to a nearly 11% decline in its stock price [1]. Group 1: Company Relationships - Jamie Power, a senior vice president at Walt Disney, stated that Disney no longer uses Magnite, opting instead for platforms operated by Google and The Trade Desk [2]. - Benchmark analyst Dan Kurnos noted that the change in Disney's relationship with Magnite was previously announced in March, suggesting that the market's reaction was based on a misunderstanding of the timeline [3]. Group 2: Analyst Perspectives - Analyst Dan Kurnos expressed skepticism about Disney creating a complete ad stack without Magnite, indicating that Magnite may still play a crucial role in future negotiations [4]. - B. Riley's Daniel Day defended Magnite, maintaining a buy recommendation and a price target of $18.50, emphasizing that Disney still considers Magnite "critical" to its success [4]. Group 3: Market Reaction - Despite the defense from analysts, Magnite's stock continued to decline, indicating that investor sentiment remained influenced by the initial negative news from Disney's executive [5].