Magnite (MGNI): Evaluating Valuation Following Strong Earnings and New CTV Product Launches

Magnite (MGNI) saw its shares move after posting impressive quarterly results, with higher revenue and profit compared to last year. The company also introduced new product enhancements and strengthened partnerships across the connected TV and programmatic ad space.

See our latest analysis for Magnite.

Despite robust quarterly earnings and headline product partnerships, Magnite’s recent 30-day share price return of -18.8% and a sharp 90-day drop of nearly 40% highlight the volatility tech names can face in changing ad markets. Still, its three- and five-year total shareholder returns remain positive, suggesting that long-term investors have been rewarded for riding out the stock’s ups and downs as momentum ebbs and flows.

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With shares trading well below analyst targets and positive earnings and innovation headlines in the spotlight, investors now face a critical question: is Magnite undervalued, or is the market already pricing in its next phase of growth?

Most Popular Narrative: 49.6% Undervalued

With Magnite’s last close at $14.21, the current fair value estimate from the most widely followed narrative lands at $28.19, nearly double where shares sit today. The narrative’s math is anchored in a bullish outlook for future revenue growth, margin expansion, and pivotal ad market shifts.

Anticipated regulatory changes resulting from the DOJ antitrust case against Google could lead to meaningful market share shifts in DV+, potentially creating $50M in incremental annualized contribution ex-TAC for every 1% share gain without a material increase in operating costs, thus materially improving earnings leverage.

Read the complete narrative.

Curious about what powers such a large gap between price and value? The secret sauce: forecasts for rapid earnings growth and aggressive margin expansion. Want the inside track on why analysts think Magnite could shatter expectations? Only the full narrative reveals the bold numbers behind this fair value.

Result: Fair Value of $28.19 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, risks such as major streamers renegotiating contracts or regulatory delays could quickly challenge Magnite’s bullish growth narrative and market share assumptions.

Find out about the key risks to this Magnite narrative.

Build Your Own Magnite Narrative

If you’d rather dig into the numbers and craft your own perspective, it only takes a few minutes to create and share a personalized valuation. Do it your way

A great starting point for your Magnite research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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