2. Perion Network Ltd. (NASDAQ:PERI)
Market Cap as of August 26: $417.38 million
Number of Hedge Fund Holders: 26
Short % of Shares Outstanding as of July 31: 3.46%
Perion Network Ltd. (NASDAQ:PERI) is a global technology company that specializes in digital advertising products and services. It uses AI to deliver personalized and effective advertising solutions to various industries.
The company delivered $108.69 million in revenue for Q2 2024. This was higher than analyst expectations by $1.76 million but there was a 39.10% year-over-year decrease. The loss per share was $0.13.
Perion Network Ltd. (NASDAQ:PERI) is making significant strides in technology, creating key integrations and partnerships. Perion Network Ltd. (NASDAQ:PERI) recently acquired Hivestack which strengthened its programmatic digital out-of-home capabilities. It also successfully executed omni-channel campaigns for clients like Colorado Tourism, combining CTV, audio, and mobile ads.
The company’s CTV solutions gained traction in Q2, with brands utilizing location-based capabilities for targeted advertising. The CTV technology now extends to YouTube. Additionally, it introduced features like “click to cart” to enhance retail campaigns and drive purchases. Perion Network Ltd. (NASDAQ:PERI) is setting the standard for programmatic digital out-of-home advertising.
The company saw a leadership change with the CFO, Maoz Sigron, being promoted to COO. Elad Tzubery became the new CFO, starting in August. Perion Network Ltd.’s (NASDAQ:PERI) commitment to innovation and strategic partnerships is driving strong growth and positioning it as a leader in the digital advertising space. This is why it is one of the top small-cap AI stocks to buy according to short sellers.
With 29 hedge fund holders, Private Capital Management is the largest stakeholder with a position of $15,009,726, as of Q2 2024.
Richie Capital Group made the following comment about Perion Network Ltd. (NASDAQ:PERI) in its Q1 2023 investor letter:
“Perion Network Ltd. (NASDAQ:PERI) (PERI up +56.4%) – Our investment in the Israeli based ad-tech company has now been a top performer for two quarters in a row. In February, Perion announced full year 2022 earnings which included guidance for 14% revenue and EBITDA growth in 2023. This implies meaningful growth in a challenging environment where their peers continue to struggle. Despite the stock’s strong performance, Perion is still trading at a modest 19x earnings.
In addition to the optimistic growth outlook, Perion seems to be benefiting from anticipation of Bing’s new ChatGPT driven search engine. Bing is Perion’s largest customer. We, along with Perion’s management, believe that the “new Bing” offers a meaningful growth opportunity. The more users convert to Bing, the more publishers will advertise on the platform and drive Perion revenue. On Microsoft’s Q4 earnings call, CFO Amy Hood discussed the impact of growing Bing market share: “every percentage point of share it gains in search equals roughly $2 billion in additional advertising revenue.” It is difficult to envision a scenario where Perion is not a direct beneficiary of Bing’s success…” (Click here to view the full text)
