4. Magnite, Inc. (NASDAQ:MGNI)
Short Interest: 6.20%
Number of Hedge Fund Holders: 25
Magnite (NASDAQ:MGNI) is an independent sell-side adtech company that provides tech solutions for the automation of the sale and purchase of digital advertising inventory. The company’s platform boasts services and applications for publishers owning and operating connected television (CTV) channels, websites, applications, and other digital media properties to monetize and manage their inventory. Apart from that, it also offers features to sellers of digital advertising inventory and buyers such as agencies, advertisers, agency trading desks, and demand side platforms (DSPs) looking to buy digital advertising inventory.
Magnite (NASDAQ:MGNI) manages a transparent marketplace that connects sellers and buyers, facilitating automated transaction execution at scale and intelligent decision-making. Its ad server and streaming sell-side advertising platform (SSP) offers CTV sellers an all-encompassing solution for yield monetization and management and streamlining workflow across direct-sold and programmatic video inventory.
The company has strong financials and exceeded its top-line financial guidance in Q2 fiscal 2024. It holds a competitive edge in the CTV market due to its selection as Netflix’s programmatic FSP partner. This collaboration has brought significant momentum to Magnite (NASDAQ:MGNI), making it appealing to new investors and partners alike. Its competitive moat stems from continuous investments in various capabilities and features over the years. Key drivers of its strong CTV performance were the growing programmatic adoption by some of the largest industry players, strong overall ad spend growth, and ad serving strength. Its ad spend grew more than 20% in Q2.
Besides its Netflix win, Magnite (NASDAQ:MGNI) secured two additional highly profitable partnerships: United Airlines and Roku. The company recently announced that it is set to act as the centralized ad platform for in-flight entertainment in United Airlines, showing its continued growth in the commerce media space and programmatic advertising arena.
In addition, Magnite (NASDAQ:MGNI) also announced an expansion of its seven-year partnership with Roku in support of powering the new Roku Exchange. Integrating with Magnite (NASDAQ:MGNI) allows the Roku Exchange to connect to the programmatic ecosystem. In addition to connecting the exchange to third-party buyers, Magnite (NASDAQ:MGNI) provides a demand facilitation team and incremental advertising opportunities through its agency and clear-line marketplace solutions.
Magnite’s (NASDAQ:MGNI) total revenue grew 7% to $163 million in Q2 2024 as compared to Q2 2023. 25 hedge funds hold stakes in the stock as of Q2 2024. Choice Equities Fund stated the following regarding Magnite, Inc. (NASDAQ:MGNI) in its Q2 2024 investor letter:
“Magnite, Inc. (NASDAQ:MGNI) – Portfolio holding Magnite is worth a deeper dive given the impressive list of customer wins the company has been announcing recently. Streaming players like Roku, Telus, Media Ocean and, most importantly, Netflix have all chosen Magnite to serve as their sole SSP (Supply Side Platform) to sell their ad inventory programmatically. The recent wins (which add to existing relationships with the likes of AMC Networks, DISH Media, Disney Advertising, FOX Corporation, FuboTV, LG Ads Solutions, VIZIO, and Warner Bros. Discovery) highlight the strength of Magnite’s offering within the Connected TV (CTV) value chain as the largest independent – and unbiased – supply-side ad exchange in the world. Though the wins have come in bunches lately, establishing this advantaged competitive position was not something that happened overnight, as CEO Michael Barrett has employed savvy, strategic acquisitions of CTV supply-side peers Telaria (2020), SpotX (2021), and SpringServe (2021) to bolster this position.”
