MGNI - Magnite: Cash Flows Now Matter

2024-03-08 15:37:42 ET

Summary

• Magnite's stock is up significantly in recent months, driven by strong cash flows and improving margins as amortization expenses normalize.
• The company's CTV business is stabilizing and expected to return to YoY growth in Q1 2024, with the shift towards streaming providing a long growth runway.
• Magnite will soon be in a position to begin returning significant amounts of capital to shareholders, which should support the stock price.

I previously suggested that Magnite, Inc.'s ( MGNI ) strong cash flows would eventually matter, and this has proven to be the case over the past three months, with the stock up around 40%. While the business continues to face headwinds, and competition remains a threat, Magnite's growth is starting to pick up and its margins are recovering from elevated amortization expenses....

For further details see: