Magnite 's (NASDAQ: MGNI) stock price has been off to the races over the last six months since I decided to buy. The stock is up nearly 600% since last autumn, a run supported by its recent announcement that it was purchasing connected TV (CTV) advertising platform SpotX for $560 million in cash plus 14 million new shares of Magnite. It isn't the extreme value it was before, but still a pretty good deal in my view.
The largest independent sell-side advertising platform is betting big on video advertising, and rapid shifts toward internet video and streaming TV put Magnite in a great position. For investors looking to bet on CTV, this is a way to play the whole movement without picking which streaming service will come out on top.
Magnite is a bit of an unconventional story in the advertising technology space. It's a product of merger between Telaria and The Rubicon Project which finalized in April 2020 and then changed its name to Magnite last summer. The addition of SpotX will build on its lead as a sell-side platform (for content producers selling ad slots) for digital video. By contrast, its much larger peers The Trade Desk (NASDAQ: TTD) and Roku (NASDAQ: ROKU) have mostly grown organically.
For further details see:
Why Magnite Is a Top Play on TV Streaming