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MGNI Stock Surges 31% in 3 Months: Is There Room for Further Growth?

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Magnite's (MGNI - Free Report) shares have soared 30.9% over the past three months, outperforming the Zacks Computer and Technology sector’s appreciation of 5.5% and the Zacks Internet – Software industry’s return of 4%.

MGNI's shares have also outperformed its peers like Amazon, Alphabet and Microsoft (MSFT - Free Report) , which have gained 18.1%, 13.4% and 0.6%, respectively, in the same time frame.

MGNI’s remarkable performance can be attributed to growth in its Connected TV (CTV) segment, strategic partnerships with industry leaders and the success of its self-service platform, ClearLine.

MGNI’s CTV and Strategic Partnerships Drive Strong Growth

MGNI is benefiting from robust growth in CTV, with contributions excluding Traffic Acquisition Costs (ex-TAC) from CTV increasing 23% year over year in third-quarter 2024. The growth is being driven by increased ad spend, programmatic adoption by industry giants like Roku, Disney (DIS - Free Report) , Warner Bros. Discovery and LG, and significant contributions from political advertising.

MGNI’s self-service platform, ClearLine, continues to gain momentum with over 20 agencies and brands actively leveraging its features. Innovations like the SpringServe and Magnite streaming SSP combination are making the company poised as a programmatic-first partner in the industry.

Strategic partnerships with Netflix (NFLX - Free Report) and Disney further strengthen MGNI’s market position. Its expanded deal with Disney now includes live sports, international markets and podcasts, with Disney inventory also integrated into ClearLine.

MGNI’s partnership with Netflix is also expanding as the platform is rolling out Magnite-powered programmatic solutions, which is expected to substantially boost revenues in 2025.

MGNI’s Earnings Estimate Trend Steady

The Zacks Consensus Estimate for MGNI’s fourth-quarter 2024 earnings is currently pegged at 35 cents per share and has remained unchanged over the past 30 days.

The consensus mark for fourth-quarter revenues is pegged at $184.11 million, indicating year over year growth of 11.39%.

The Zacks Consensus Estimate for MGNI’s full-year 2024 earnings has remained steady at 71 cents per share over the past 30 days.

The consensus mark for MGNI’s 2024 revenues is pegged at $610.85 million, indicating year-over-year growth of 8.45%.

MGNI beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and was in line in one quarter, the average surprise being 197.40%.

 

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

What Should Investors Do With MGNI Stock?

MGNI’s strong growth prospects, driven by its thriving CTV segment, strategic partnerships and innovations like ClearLine and SpringServe, position the company for continued success.

MGNI currently has a Zacks Rank #2 (Buy) and Growth Score of B, a favorable combination that offers strong investment opportunity, per the Zacks proprietary methodology. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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