The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how advertising & marketing services stocks fared in Q2, starting with Taboola (NASDAQ: TBLA).
The sector is on the precipice of both disruption and growth as AI, programmatic advertising, and data-driven marketing reshape how things are done. For example, the advent of the Internet broadly and programmatic advertising specifically means that brand building is not a relationship business anymore but instead one based on data and technology, which could hurt traditional ad agencies. On the other hand, the companies in the sector that beef up their tech chops by automating the buying of ad inventory or facilitating omnichannel marketing, for example, stand to benefit. With or without advances in digitization and AI, the sector is still highly levered to the macro, and economic uncertainty may lead to fluctuating ad spend, particularly in cyclical industries.
The 7 advertising & marketing services stocks we track reported a satisfactory Q2. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.
In light of this news, share prices of the companies have held steady as they are up 1% on average since the latest earnings results.
Taboola (NASDAQ: TBLA)
Often appearing as those "You May Also Like" or "Recommended For You" boxes at the bottom of news articles, Taboola (NASDAQ: TBLA) operates a digital platform that recommends personalized content to users across publisher websites, helping both publishers monetize their sites and advertisers reach target audiences.
Taboola reported revenues of $465.5 million, up 8.7% year on year. This print exceeded analysts’ expectations by 3.6%. Overall, it was a strong quarter for the company with a beat of analysts’ EPS estimates and full-year revenue guidance slightly topping analysts’ expectations.
"We delivered a strong second quarter, beating the high end of our guidance across our key metrics,” said Adam Singolda, CEO of Taboola.
Interestingly, the stock is up 5.8% since reporting and currently trades at $3.39.
Is now the time to buy Taboola? Access our full analysis of the earnings results here, it’s free.
Best Q2: Liberty Broadband (NASDAQ: LBRDK)
Operating across the United States, Liberty Broadband (NASDAQ: LBRDK) is a provider of high-speed internet, cable television, and telecommunications services across various markets.
Liberty Broadband reported revenues of $261 million, up 6.1% year on year, outperforming analysts’ expectations by 3.7%. The business had an exceptional quarter.
Liberty Broadband scored the biggest analyst estimates beat among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $60.02.
Is now the time to buy Liberty Broadband? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Ibotta (NYSE: IBTA)
Originally launched as a way to make grocery shopping more rewarding for budget-conscious consumers, Ibotta (NYSE: IBTA) is a mobile shopping app that allows consumers to earn cash back on everyday purchases by completing tasks and submitting receipts.
Ibotta reported revenues of $86.03 million, down 2.2% year on year, falling short of analysts’ expectations by 5%. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates.
Ibotta delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 21% since the results and currently trades at $26.92.
Read our full analysis of Ibotta’s results here.
Magnite (NASDAQ: MGNI)
Born from the 2020 merger of Rubicon Project and Telaria, Magnite (NASDAQ: MGNI) operates the world's largest independent sell-side advertising platform that automates the buying and selling of digital advertising inventory across all channels and formats.
Magnite reported revenues of $173.3 million, up 6.4% year on year. This result came in 2.2% below analysts' expectations. In spite of that, it was a satisfactory quarter as it recorded a beat of analysts’ EPS estimates.
The stock is up 3.2% since reporting and currently trades at $23.16.
Read our full, actionable report on Magnite here, it’s free.
Omnicom Group (NYSE: OMC)
With a vast network of creative agencies that helped craft some of the most memorable ad campaigns in history, Omnicom Group (NYSE: OMC) is a strategic holding company that provides advertising, marketing, and communications services to many of the world's largest companies.
Omnicom Group reported revenues of $4.02 billion, up 4.2% year on year. This print surpassed analysts’ expectations by 1.2%. Overall, it was a satisfactory quarter as it also produced organic revenue in line with analysts’ estimates.
The stock is up 8% since reporting and currently trades at $76.51.
Read our full, actionable report on Omnicom Group here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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