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Meet the Blockbuster Stock Joining the S&P 500. It Soared 541% Over the Past Year, and It's Still a Buy Right Now, According to Wall Street
The Motley Fool· 2025-09-12 07:04
Core Insights - AppLovin is set to join the S&P 500 on September 22, 2025, marking it as one of only 10 companies to be added this year [2] - The stock has experienced a remarkable 541% increase over the past year and a 652% gain since its IPO in early 2021, significantly outperforming the S&P 500's 55% increase during the same period [2] - The company's revenue has surged by 510% and net income has skyrocketed by 3,490% in less than five years, indicating strong fundamentals [2] Company Performance - In Q2, AppLovin reported revenue of $1.26 billion, a 77% year-over-year increase, and earnings per share (EPS) of $2.39, up 169% [7] - The results exceeded Wall Street's expectations, with analysts predicting revenue of $1.22 billion and EPS of $1.96 [8] - The company forecasts Q3 revenue of $1.33 billion, surpassing analysts' expectations of $1.31 billion [8] Financial Metrics - Operating cash flow reached $772 million, a 70% increase, while free cash flow was $768 million, up 72% [9] - AppLovin's net revenue per installation increased by 70%, and the number of installations grew by 8% [7] Market Sentiment - Wall Street analysts remain bullish on AppLovin, with 76% rating it a buy or strong buy [10] - Analyst Rob Sanderson from Loop Capital has a buy rating with a price target of $650, suggesting a potential upside of 33% [11] - The stock is currently priced at 36 times next year's expected earnings and 23 times next year's sales, which is considered reasonable given its growth trajectory [12] Industry Position - AppLovin operates in the adtech sector, providing a SaaS platform that aids app developers in marketing and monetizing their applications [5] - The company is expanding its offerings to include new adtech solutions tailored for e-commerce platforms and leveraging AI technology with its Axon 2.0 platform [6]
Why The Trade Stock Was Tumbling Today
Yahoo Finance· 2025-09-10 20:14
Key Points Advertisers on Netflix can now use Amazon's DSP, dealing a blow to The Trade Desk. Investors were already concerned about The Trade Desk's slowing growth before today's news. Morgan Stanley also downgraded the adtech stock. 10 stocks we like better than The Trade Desk › On a day when artificial intelligence (AI) stocks were broadly moving higher, The Trade Desk (NASDAQ: TTD) was down double digits. The leading adtech company got dinged by news that Netflix had integrated with Amazon's ...
These Were the 5 Worst-Performing Stocks in the S&P 500 in August 2025
The Motley Fool· 2025-09-06 08:05
Core Viewpoint - A new AI trend may provide investment opportunities for stocks that underperformed in August, particularly Super Micro Computer, which has shown strong growth potential in the AI infrastructure sector [1][15]. Group 1: August Stock Performance - The S&P 500 historically performs poorly in September, with stocks often declining [1]. - Five stocks, including The Trade Desk, Super Micro Computer, Gartner, Fortinet, and Coinbase, were the worst performers in August, with declines ranging from 19% to 37% [2][4]. Group 2: Reasons for Declines - All five stocks experienced declines following their quarterly financial results, indicating that earnings reports were a common trigger for the downturn [6]. - The Trade Desk's stock fell due to disappointing Q3 2025 revenue guidance of only 14% growth and a sudden CFO change [7]. - Super Micro Computer reported a 47% year-over-year increase in net sales, but its gross margin fell to 9.5%, causing investor concern [8]. - Gartner's stock dropped despite beating earnings expectations, as management projected only 2% growth for the year, signaling limited upside [9]. - Fortinet's stock declined due to concerns over its growth amid a product refresh cycle, which management attempted to downplay [11]. - Coinbase's revenue decline and rising expenses, particularly in transaction revenue, led to a negative outlook for Q3 [12]. Group 3: Investment Opportunities - Super Micro Computer is highlighted as a potential buying opportunity due to its strong demand for AI infrastructure, with management expecting at least 50% growth in fiscal 2026 [15]. - The stock is considered undervalued at 24 times earnings, which is lower than the S&P 500 average, despite its high growth rate [16]. - Improvement in Super Micro's gross margin, projected to recover to 15%-16%, could significantly enhance profitability and stock performance [17][18].
Prediction: 1 Artificial Intelligence (AI) Stock Will Be Worth More Than Nvidia and Palantir Technologies Combined by 2030
The Motley Fool· 2025-08-31 08:30
Core Insights - Meta Platforms is leveraging artificial intelligence to enhance its advertising business and is positioned to introduce its Orion augmented reality glasses as a significant consumer electronics product [1][9] Group 1: Advertising Business - Meta Platforms is a leading digital advertising company with extensive AI capabilities, owning three of the four most popular social media platforms, which allows for vast consumer data collection [4] - The company has seen a 5% increase in time spent on Facebook and a 6% increase on Instagram due to advancements in its recommendation systems, leading to improved advertising conversion rates [5] - Meta is aggressively investing in AI infrastructure, aiming to automate the entire ad creation process by next year, allowing brands to generate ads using AI based on product images and budget goals [6][7] Group 2: Smart Glasses Market - Meta is the market leader in smart glasses, with shipments more than tripling last year and projected to grow over 60% annually through 2029 [8] - The Ray-Ban smart glasses accounted for nearly 75% of shipments in the first half of 2025, up from 60% in 2024, indicating a growing market share [7] - The Orion smart glasses, which incorporate augmented reality, are expected to revolutionize personal computing, with potential commercialization in the coming years [9][10] Group 3: Future Growth Potential - The digital advertising sector is forecasted to grow at 14% annually through 2032, while smart glasses sales are expected to increase by over 60% annually through 2029, providing a strong growth outlook for Meta [11] - If Meta achieves annual earnings growth of over 20% in the next five years, its share price could rise by 149%, potentially increasing its market value to $4.7 trillion by mid-2030 [12]
Entravision Communications: How EVC Could Add To Its Recent Gains
Seeking Alpha· 2025-08-27 10:40
Core Viewpoint - Shares in Entravision Communications (NYSE: EVC), primarily an adtech company with legacy Spanish-language TV and radio broadcasting assets, have performed well this summer [1] Group 1 - The positive performance of Entravision Communications' shares is attributed to its adtech business and broadcasting assets [1]
Why AppLovin Stock Crept Almost 2% Higher Today
The Motley Fool· 2025-08-21 21:25
Core Viewpoint - AppLovin's shares experienced a nearly 2% increase following a price target raise by Wells Fargo, despite the S&P 500 index declining by 0.4% [1][2] Group 1: Analyst Insights - Wells Fargo analyst Alec Brondolo raised AppLovin's price target from $480 to $491 per share while maintaining an overweight (buy) recommendation [2] - The increase in price target was based on adjustments to revenue estimates for 2026 and 2027, with a 6% increase for 2026 and a 3% increase for 2027 [4] Group 2: Market Trends - The analyst noted a rise in web traffic to AppLovin customer sites, indicating higher demand for its services [5] - Despite a decline in overall web advertising customer growth, the industry is attracting larger clients with presumably higher budgets [5] Group 3: Company Performance - AppLovin reported a 77% year-over-year revenue surge in the second quarter, reaching nearly $1.3 billion, with earnings per share (EPS) from continuing operations nearly tripling to $2.39 [6]
Should You Buy the Dip on PubMatic Stock?
The Motley Fool· 2025-08-13 09:35
Core Viewpoint - PubMatic's stock experienced a significant decline due to disappointing guidance for the third quarter, despite a generally positive second-quarter performance [1][5]. Financial Performance - PubMatic reported a 6% increase in revenue for the second quarter, totaling $71.1 million, with a net dollar-based retention rate of 102% [1]. - The company generated $9.3 million in free cash flow in the second quarter, an increase from $6.9 million in the same period last year [4]. - Cash and marketable securities amounted to $118 million at the end of the second quarter, with no debt [9]. Growth Drivers - Connected TV (CTV) was a significant growth area, with revenue increasing over 50% year over year, and omnichannel video revenue grew by 34%, making up 41% of total revenue [2]. - The Activate solution for video ad inventory saw buying activity more than double from the first quarter, with PayPal as a notable customer [3]. Challenges and Outlook - The company's third-quarter revenue guidance is projected between $61 million and $66 million, reflecting a year-over-year decline of about 12% at the midpoint [5]. - A reduction in ad spending from a major demand-side platform (DSP) buyer is a primary reason for the poor outlook, with speculation pointing to The Trade Desk [6]. - PubMatic is working to diversify its DSP partner mix, with ad spending from performance marketers and mid-tier DSPs increasing by over 20% in the second quarter [7]. Investment Considerations - Despite the current challenges, the company’s strong balance sheet and cash position provide a buffer against short-term disruptions [9]. - The stock is trading near its 52-week low, with a market capitalization of approximately $400 million, and the company has the potential to scale up share repurchases [10]. - The overall assessment suggests that the current issues may be temporary, and the company’s ongoing diversification efforts could stabilize revenue growth in the future [8][11].
TNL Mediagene (NASDAQ: TNMG) Publishes Corporate & Valuation Update; Provides Summary Commentary
Prnewswire· 2025-08-12 12:30
Company Overview - The company, TNL Mediagene, was formed in May 2023 through the merger of Taiwan's The News Lens Co. and Japan's Mediagene Inc., operating in the digital media sector with a focus on original and licensed media brands across multiple languages [9] - It has a strong management team led by Co-Founder & CEO Joey Chung and Co-Founder & President Motoko Imada, supported by a board with international experience from leading companies [1] - The company has a significant operational history of 12 years in Taiwan and 26 years in Japan, employing approximately 500 staff across Asia [1][9] Financial Performance - For FY2024, TNL Mediagene reported consolidated revenue of $48.5 million, a gross profit of $17.7 million, and near-breakeven adjusted EBITDA [1] - The company serves over 45 million monthly unique users and has more than 850 advertising customers, including multinational and regional companies [1] Valuation Insights - The company's current trading multiples are significantly below the median public trading reference comparables and the median precedent M&A reference transaction multiples, indicating that the company is currently undervalued [6] - The median Enterprise Value/Revenue multiples for the AdTech and Digital & Social Media sectors are 4.3x and 6.7x respectively, while TNL Mediagene's current multiple is 0.7x [3][5][6] - The company is benchmarking its valuation against a group of public trading comparables and M&A transactions to assess its market position [2][3] Strategic Direction - The management emphasizes the company's commitment to organic growth and M&A-driven expansion strategies, aiming to close the valuation gap compared to its peers [7] - TNL Mediagene plans to enhance its media property portfolio and client base through accretive M&A activities [7]
X @Sui
Sui· 2025-08-11 21:51
Industry Focus - Adtech is moving on-chain [1] - The Sui Stack powers the next generation of adtech [1] Event Details - Alkimi, SuiNetwork, and a global brand strategist are collaborating [1] - The event will be moderated by a Web3 event organizer [1] Key Discussion Points - The discussion will focus on why advertising must move on-chain [1] - The discussion will focus on what it takes to make on-chain advertising happen [1]
AppLovin Shares Jump as Revenue Continues to Surge. Is It Too Late to Buy the Stock?
The Motley Fool· 2025-08-11 08:15
The stock is up more than 500% over the past year. AppLovin (APP 4.21%) once again held up to the short-seller scrutiny it's been under, with yet another quarter of surging revenue and profitability growth. The stock is now up more than 500% over the past year and more than 30% year to date. A trio of short-sellers -- Fuzzy Panda Research, Muddy Waters, and Culper Research -- have tried to cast doubt on the legitimacy and effectiveness of AppLovin's artificial intelligence (AI) adtech platform, Axon 2.0. Ho ...