Shares of Magnite (NASDAQ: MGNI) fell sharply on Thursday after the advertising-technology company reported its fourth-quarter and full-year results. It exceeded expectations, and its guidance is ahead of Wall Street's consensus forecasts. However, it seems investors were taking some gains off the table after the stock's incredible one-year run. At the close of trading, Magnite stock was down by 15%.
Magnite's results are tricky to decipher because they include comparisons to when it was two separate companies: Telaria and The Rubicon Project. Fourth-quarter revenue only grew 20% year over year when combining what its predecessor companies did separately. For context, the company had previously pre-announced its $221 million in full-year revenue, so there weren't any surprises Thursday. However, when that figure was originally revealed, it exceeded Wall Street's expectations.
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Why Magnite Stock Fell Sharply Today