Magnite: 2025 Will Be Determined By The Timing Of Partnerships

2025-03-18 23:18:33 ET

Summary

• CTV continues to drive Magnite's growth, although the company also benefitted from significant political ad spend tailwinds in 2024.
• While growth in 2025 is likely to be modest, due to difficult comparables, the underlying business is expected to remain robust.
• Growth should be supported by new CTV partners, particularly Netflix, although the timing of these isn't really clear at this stage.
• While this is positive, particularly given Magnite's seemingly low valuation, macro uncertainty and investor skepticism may limit MGNI stock's near-term gains.

Magnite's ( MGNI ) share price has come under significant pressure in recent months, which is not that surprising given investor skepticism of adtech companies in general and how the adtech landscape continues to rapidly evolve. Magnite's growth is likely to remain robust going forward though, driven by CTV. Recent DV+ weakness also appears to have been temporary. In addition, Magnite's margins continue to improve with scale, which should enable the company to begin returning meaningful cash to shareholders in the near future....

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