Many small-cap stocks have limited Wall Street coverage, giving savvy investors the chance to act before everyone else catches on.
But the flip side is that these businesses have increased downside risk because they lack the scale and staying power of their larger competitors.
A number of stocks jumped in the morning session after a Federal judge ruled that advertising giant Google (owned by Alphabet) monopolized online advertising technology. The affected technologies were the publisher ad servers and exchanges. These platforms are central to how digital ads are bought, sold, and placed across the internet, and they have been major revenue drivers for Alphabet. The decision raised the possibility that Alphabet could be forced to divest these assets, potentially weakening its control over digital ad infrastructure and creating new growth opportunities for independent ad tech firms.
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how PubMatic (NASDAQ:PUBM) and the rest of the advertising software stocks fared in Q4.
Wrapping up Q4 earnings, we look at the numbers and key takeaways for the sales and marketing software stocks, including Sprout Social (NASDAQ:SPT) and its peers.
PubMatic’s stock price has taken a beating over the past six months, shedding 30.7% of its value and falling to $9.98 per share. This was partly driven by its softer quarterly results and might have investors contemplating their next move.
Shares of programmatic advertising platform Pubmatic (NASDAQ: PUBM)
fell 24% in the morning session after the company reported weak fourth-quarter results: its revenue and EBITDA guidance for the next quarter fell short of Wall Street's estimates. On the other hand, PubMatic beat analysts' EPS and EBITDA expectations this quarter. We note that ad tech companies had weaker quarters in general, as both The Trade Desk and DoubleVerify missed on revenue and guided below for next quarter. PubMatic wasn't spared, and the stock traded down.
Programmatic advertising platform Pubmatic (NASDAQ: PUBM) missed Wall Street’s revenue expectations in Q4 CY2024 as sales only rose 1.1% year on year to $85.5 million. Next quarter’s revenue guidance of $62 million underwhelmed, coming in 5.9% below analysts’ estimates. Its non-GAAP profit of $0.41 per share was 9.6% above analysts’ consensus estimates.
Programmatic advertising platform Pubmatic (NASDAQ: PUBM)
will be announcing earnings results tomorrow after the bell. Here’s what investors should know.
Looking back on advertising software stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Integral Ad Science (NASDAQ:IAS) and its peers.
