Here’s Why Investors Are Watching These Ad Tech Stocks Right Now
The broader stock market today continues to rally towards newer heights on positive earnings, job market figures, and legislative news. Among the notable growth sectors now would be ad tech stocks. Simply put, ad tech, as the name suggests, consists of companies that specialize in digital advertising. This can include services such as big data analytics, online visibility solutions, and related software-as-a-service offerings among others. For the most part, as consumer-business interactions become increasingly digital, the viability of the industry grows by the day. As a result of all this, investors could be looking out for the best ad tech stocks in the stock market now.
At the same time, companies like The Trade Desk (NASDAQ: TTD) and Semrush (NYSE: SEMR) continue to make moves. Notably, TTD stock is now trading at $89.22 as of 1:58 p.m. ET and is up by over 30%. This is likely on account of its latest quarterly earnings update. Namely, the company raked in a record quarterly revenue of $301.1 million. This marks a sizable 39% year-over-year increase. Meanwhile, Semrush remains busy on the operational front as well. Late last month, the company celebrated the launch of its Sellzone platform by launching a new toolkit for merchants on Amazon (NASDAQ: AMZN). With all this activity in the ad tech space now, I can understand if investors are keen on ad tech stocks. On that note, here are four to consider in the stock market today.
Best Ad Tech Stocks To Watch In November 2021
- PubMatic Inc. (NASDAQ: PUBM)
- Magnite Inc. (NASDAQ: MGNI)
- Roku Inc. (NASDAQ: ROKU)
- Meta Platforms Inc. (NASDAQ: FB)
PubMatic Inc.
Starting us off today is PubMatic. In brief, the company develops and employs online advertising software. Through its ad tech offerings, PubMatic caters to the digital publishing and advertising industries. In detail, the company’s cloud infrastructure platform for digital advertising helps app developers and publishers to better monetize their content. Moreover, PubMatic also allows its media clients to reach and engage with their target audiences in a brand-safe manner across ad formats. With the company set to report its third-quarter earnings tomorrow, PUBM stock could be in focus now.
As it stands, PUBM stock is now trading at $29.97 a share as of 1:52 p.m. ET. This is after gaining by over 12% since today’s opening bell. Sure, the current momentum in stocks could also account for part of these gains. Even so, PubMatic is not sitting idly by as well.
Just last month, the company expanded its ongoing partnership with Semasio, a pioneer in unified targeting advertising. Together, the duo are now offering clients contextual advertising, a “privacy-forward” ad tech solution. According to PubMatic, this means that consumers receive ads based on the context of the page. In theory, such a feature could provide a long-term alternative for marketers in place of cookie-based ad targeting. As such, will you be watching PUBM stock this week?
Read More
- 4 Artificial Intelligence Stocks To Watch Right Now
- Best Lithium Battery Stocks To Buy Now? 4 To Know
Magnite Inc.
Next up, we have Magnite, an online advertising technology company. In brief, it is the world’s largest independent sell-side advertising platform. Publishers use its technology to monetize their content across all screens and formats. This would include online video, display, and audio. The world’s leading agencies and brands utilize its platform to access brand-safe and high-quality ad inventory and also execute billions of advertising transactions each month. MGNI stock currently trades at $24.46 as of 1:53 p.m. ET and is up by over 7% on today’s opening bell.
Investors are likely responding to news of the Trade Desk’s impressive quarter. How has Magnite been doing financially in light of this? Last week, Magnite too reported a strong third quarter. Diving in, revenue for the quarter was $131.9 million, up by 116% compared to a year ago. Adjusted EBITDA was $40 million for the quarter, representing a margin of 35%.
Magnite has also closed the acquisition of SpringServe during this quarter. SpringServe is a leading ad serving platform for connected TV (CTV). The company says that with the addition of SpringServe, it will be better positioned to meet the needs of leading CTV publishers. SpringServe will also no doubt help make digital advertising more efficient for the company. Given this piece of news, is MGNI stock worth investing in right now?
[Read More] 5 Metaverse Stocks To Watch In November 2021
Roku Inc.
Following that, we have Roku, an ad tech company that has an advertising business and also licenses its hardware and software to other companies. In essence, it connects users to streaming services and enables content publishers to build and monetize large audiences. It also provides advertisers with unique capabilities to engage consumers. ROKU stock currently trades at $276.93 a piece as of 1:53 p.m. ET.
Last week, the company had also just reported its third-quarter financials. Impressively, its total net revenue grew by 51% year-over-year to $680 million. On top of that, platform revenue increased to 82% year-over-year to $583 million. Active accounts reached 56.4 million with a net increase of 1.3 million active accounts added during the quarter.
Furthermore, Roku’s average revenue per user (ARPU) grew to $40.10, up by 49% compared to a year earlier. Roku says that content publishers are using its tools to build and retain streaming audiences. With that, Media & Entertainment promotional spending continued to grow significantly faster than the overall platform. All things considered, will you add ROKU stock to your portfolio?
[Read More] Top Reddit Stocks To Buy Right Now? 5 For Your Late 2021 Watchlist
Meta Platforms Inc. (Formerly Facebook)
Meta Platforms is a multinational technology conglomerate holding company and is the parent company for social media platforms, Facebook, Instagram, and WhatsApp among other subsidiaries. In fact, it is one of the world’s most valuable companies and generates a substantial share of its revenue from the sale of advertisement placements to marketers. FB stock currently trades at $341.90 as of 1:54 p.m. ET and is up by over 25% year-to-date.
In late October, the company rebranded itself as Meta Platforms to build the metaverse. Meta’s metaverse will be a shared virtual environment. Analysts expect the metaverse platform to create a new type of experience for consumers using augmented and virtual reality technology. Some believe that there will be potential for workplaces, virtual fitness, education, and other sectors to join into this metaverse concept. With that, is FB stock worth adding into your watchlist?
