The advertisement planning and placement network Magnite Inc. (MGNI) has risen more than 130 percent since the beginning of the year. The stock losing 0.09 percent was worth $19.00 at ring of the bell on December 2.
An increase in the recommendation for Magnite from Wall Street was the key growth driver last week which took the stock price up 29.08 percent over the past week.
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Needham analysts, who also increased the target price for MGNI shares from $15 to $18, maintained their “Buy” recommendation for Magnite. The explanation for the improvement of the recommendation, according to the analysts’ view, was Magnite’s ability to benefit from the various positive developments that are emerging today in the advertising industry. Spending on political ads will remain high in the fourth quarter, according to Needham. Moreover the trend of moving from cable TV to streaming platforms and the increase in the number of streaming devices per household would lead to an increase in spending on ads.
Advertisers respond to these changes because there is a steady rise in demand for advertising in streaming services. This provides possibilities for the sales growth of Magnite. The company’s advertising revenue from streaming services rose by 50 percent year on year in the last quarter and now accounts for around 20 percent of overall advertising revenue. In the third quarter of 2020, Magnite’s overall revenue was $61 million, 62% higher year-on-year and 12% higher than in the second quarter of 2020.
Magnite Inc. (MGNI) is an advertisement network that has arisen from the merger of projects between Rubicon and Telaria. When viewed on different channels, including desktop computers, handheld devices, music and streaming services, the company’s technologies are used to configure advertising. Due to the high popularity of streaming services, Magnite has enjoyed favorable conditions since the beginning of the pandemic. The company was able to realize that potential which also reflected in its recent quarterly report.
