TBLA Stock Rises 37% in 3 Months, Outperforms Industry: Time to Buy?

Core Insights - Taboola.com Ltd. (TBLA) shares have increased by 36.5% over the past three months, outperforming its industry, sector, and the Zacks S&P 500 composite [1][9] - The company is positioned to capitalize on a $55 billion market through its Realize platform, which focuses on performance advertising [2][11] - TBLA is currently trading at a price-to-earnings multiple of 20.2, which is lower than the industry average of 29.7, indicating affordability [8] Company Performance - TBLA generated approximately $1.8 billion in revenues in 2024, with expectations to reach between $1.84 billion and $1.89 billion in 2025 [9][14] - The company reported over $200 million in adjusted EBITDA and about $150 million in free cash flow last year, with significant improvements in first-quarter results [13] - Management is increasing R&D spending to enhance AI capabilities while also expanding share buyback authorization to $240 million [15] Market Position and Strategy - Taboola is shifting its focus from native advertising to a broader performance advertising market, aligning with the growing demand for comprehensive digital solutions [11] - The company aims to drive incremental ad spend through new capabilities in its Realize platform and a targeted go-to-market strategy [12] - Online shopping is projected to grow at about 8% annually through 2027, which is expected to benefit TBLA as advertising budgets shift from traditional media to digital channels [11] Analyst Sentiment - The Zacks Consensus Estimate for TBLA's 2025 earnings per share indicates a significant increase of 3900% on higher revenues, with a Growth Score of A [16][18] - Analysts have shown optimistic sentiment, with earnings estimates for 2025 and 2026 moving upward in the past 60 days [16][18] Investment Consideration - Given its growth prospects, affordability, and positive analyst sentiment, TBLA is considered a strong candidate for investment [19][20]