Magnite’s Stock Rises Significantly, Driven by CTV Growth and Strategic Partnerships
Magnite‘s MGNI shares have surged 30.9% in the last three months, significantly outperforming the Zacks Computer and Technology sector’s gain of 5.5% and the Zacks Internet – Software industry’s increase of 4%.
In comparison, MGNI’s performance exceeds that of major competitors such as Amazon, Alphabet, and Microsoft MSFT, which have registered gains of 18.1%, 13.4%, and 0.6% respectively during the same period.
Strong Growth in CTV Fuels MGNI’s Performance
The company’s impressive growth can be largely attributed to its Connected TV (CTV) segment. In the third quarter of 2024, CTV revenue, excluding Traffic Acquisition Costs (ex-TAC), soared 23% year over year. This growth stems from an uptick in advertising spending, programmatic technology adoption by key players like Roku, Disney DIS, Warner Bros. Discovery, and LG, as well as significant input from political advertising.
Furthermore, MGNI’s self-service platform, ClearLine, is gaining traction, with over 20 agencies and brands utilizing its features. Innovations such as the integration of SpringServe with Magnite’s streaming SSP are positioning the company as a leader in programmatic advertising.
Partnerships with Netflix NFLX and Disney enhance MGNI’s competitive stance. The recent expanded deal with Disney now encompasses live sports, international markets, and podcasts, with Disney inventory now interfacing with ClearLine.
The collaboration with Netflix is also advancing, with the platform set to implement Magnite-powered programmatic solutions. This initiative is expected to greatly enhance revenues by 2025.
Stable Earnings Estimates for MGNI
The current Zacks Consensus Estimate for MGNI’s fourth-quarter 2024 earnings stands at 35 cents per share, unchanged over the past month.
For the fourth quarter, revenues are projected at $184.11 million, reflecting year-over-year growth of 11.39%.
MGNI’s full-year 2024 earnings estimate remains stable at 71 cents per share, while anticipated revenues for 2024 are forecasted at $610.85 million, signaling an 8.45% increase compared to the previous year.
MGNI has exceeded the Zacks Consensus Estimate for earnings in three of the last four quarters, matching expectations in one quarter, with an average surprise of 197.40%.
Magnite, Inc. Price and Consensus
Magnite, Inc. price-consensus-chart | Magnite, Inc. Quote
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Should Investors Consider MGNI Stock?
Given MGNI’s strong outlook, driven by its flourishing CTV sector, strategic partnerships, and innovations like ClearLine and SpringServe, the company is well-positioned for sustained growth.
MGNI currently holds a Zacks Rank #2 (Buy) and a Growth Score of B, indicating a promising investment opportunity according to Zacks’ proprietary analysis.
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