TBLA - Here's Why Taboola Stock Absolutely Soared on Monday
Shares of adtech specialist Taboola (NASDAQ: TBLA) absolutely soared on Monday after the company agreed to a huge long-term deal with Yahoo!. As of 10:30 a.m. ET, the stock was up 56%.
Taboola and Yahoo! have signed a 30-year deal -- yes, three decades -- that the former believes will add $1 billion in annual revenue to the top line. For this reason, in its presentation of the deal to shareholders, management said it was the "most strategic publisher and advertiser partnership in Taboola's history."
It's important to note that Taboola is guiding for about $1.4 billion in full-year 2022 revenue. However, like many adtech stocks , it has traffic acquisition costs (TAC) that distort its total revenue figure. When management says it expects $1 billion in annual revenue from its Yahoo! deal alone, it's including these traffic acquisition costs.
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Here's Why Taboola Stock Absolutely Soared on Monday