Criteo (CRTO) Faces Year-to-Date Struggles Amid Strategic Growth Initiatives

Criteo (CRTO) has seen its shares decline by 29.2% year-to-date, significantly underperforming the Zacks Computer and Technology sector, which is down 1.4%, and the S&P 500 index, which has returned 0.7%. Additionally, Criteo lags behind the Zacks Internet – Software and Services industry’s growth of 17.2% during the same period.

Several factors contribute to this underperformance, including the impact of tariffs and inflation within the industry. Despite the current setbacks, Criteo is strategically positioned for long-term growth amid ongoing macroeconomic challenges. The company is implementing key initiatives aimed at strengthening its future prospects. Below, we explore how CRTO is laying a foundation for lasting growth.

Strategic Initiatives to Enhance Retail Media and Monetization

Criteo is transitioning from its traditional retargeting model to focus on high-growth sectors like Retail Media and Commerce Audiences. In the first quarter of 2025, Retail Media on-platform revenues surged by 21% year over year, driven by heightened demand from advertisers and retailers. Off-platform monetization also saw robust growth, buoyed by a 60% increase in supply partners. This growth is attributed to partnerships with retailers such as Michaels, Dollar Tree, and Meijer, alongside the expansion of on-site monetization and self-service platforms.

The Commerce Audiences segment is another pivotal focus for Criteo, with over 250 brands integrated into its enhanced platform. With an emphasis on first-party data integration and a rising demand for performance-based targeting, this area is set to scale significantly throughout 2025.

Criteo S.A. Price and Consensus

Criteo S.A. price-consensus-chart | Criteo S.A. Quote

Criteo’s Competitive Landscape

Operating in a highly competitive environment, Criteo faces challenges from major players like Amazon (AMZN), Google (GOOGL), and The Trade Desk (TTD). Amazon leverages shopper data to sell ads directly on its platform, while The Trade Desk provides brands with data-driven tools for purchasing ads across the open Internet. Google competes with Criteo through ads on Search, YouTube, and various websites using its extensive user data. Year-to-date, shares of Amazon, Google, and The Trade Desk have experienced declines of 6%, 12.1%, and 35.1% respectively.

While these corporations dominate specific channels, Criteo distinguishes itself by offering retailer-direct access and a transparent, demand-driven platform that aligns with first-party data requirements. With an extensive retail network, a proprietary Shopper Graph, and an AI-based performance engine, Criteo is set to provide measurable returns to brands and retailers. The company aims to leverage this advantage through ongoing platform investment and innovation.

Criteo’s Positive Earnings Estimate Revisions

The Zacks Consensus Estimate for CRTO’s earnings in 2025 stands at $3.46 per share, reflecting an upward revision of 8.46% over the last 30 days. This estimate forecasts a year-over-year growth rate of 16.98%. The consensus for revenues is set at $1.15 billion, indicating a year-over-year increase of 2.41%.

Criteo has successfully surpassed the Zacks Consensus Estimate for earnings in three of the last four quarters, with an average surprise of 45.42%, missing the estimate only once.

Looking Ahead: Criteo’s Growth Potential

Criteo continues to target high-growth sectors such as Retail Media and Commerce Audiences. In the first quarter of 2025, the company successfully expanded its advertiser base by 11% year over year and increased platform adoption among key retailers like Michaels and Meijer. Enhancements like dynamic sponsored products and video ads have enriched its product offerings, while recent achievements in the grocery and home improvement sectors highlight growing market traction. With over 250 brands utilizing Commerce Audiences and rising interest in self-service options, Criteo is building significant momentum. Its clear product roadmap positions the company for long-term success.

Currently, CRTO holds a Zacks Rank #2 (Buy) and boasts a Growth Score of A, indicating a strong investment opportunity according to Zacks’ methodology.

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This article originally published on Zacks Investment Research.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.