Magnite (MGNI) Valuation in Focus Following Launch of Industry-First Live Scheduler for Streaming Ads

Magnite (MGNI) just unveiled its Live Scheduler platform, a new tool designed to help media owners better coordinate, measure, and activate advertising around live events. This approach aims to streamline the currently fragmented landscape of live stream ad management.

See our latest analysis for Magnite.

Magnite’s latest product push comes as the stock continues to search for solid ground. After sliding 25.7% over the past month, its share price has yet to regain momentum despite a promising launch and recent conference appearances. Still, the company boasts a 37% total shareholder return over three years, which shows that investors with longer horizons have seen substantial gains. However, the past year’s total return of -17.8% hints at a tougher near-term climate.

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This leaves investors at a crossroads. With shares trading well below analyst targets and recent innovation driving optimism, is Magnite undervalued, or is the market already accounting for its growth potential?

Most Popular Narrative: 50.1% Undervalued

Magnite’s most widely followed valuation narrative assigns a fair value significantly higher than the last close, painting a much more optimistic outlook than the current market price. The narrative bases its fair value on the company’s accelerating revenues, margin expansion, and major industry partnerships.

Magnite is positioned to benefit from the accelerating shift of ad spend from traditional TV to digital and connected TV (CTV) platforms. This is evidenced by deepened partnerships with top streamers (Roku, Netflix, LG, Warner Bros. Discovery, Paramount) and expanding SMB participation in CTV, which is expected to drive sustained revenue growth and a higher-margin business mix.

Read the complete narrative.

Want to know what is powering this lofty valuation? The narrative is built on bullish assumptions including rapid margin expansion and transformative industry dynamics. Discover which critical financial projections justify the jump and whether analyst optimism is warranted.

Result: Fair Value of $28.19 (UNDERVALUED)

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

However, high customer concentration and ongoing regulatory uncertainty could quickly change the outlook. This makes Magnite’s future less predictable than it seems today.

Find out about the key risks to this Magnite narrative.

Build Your Own Magnite Narrative

If you see things differently or want to dig deeper into the numbers, take a few moments to craft your own perspective. 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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