10 Worst Marketing Stocks to Buy

1. Cardlytics, Inc. (NASDAQ:CDLX)

Short % of Float: 17.31

No. of Hedge Funds as of Q2 2024: 19

Cardlytics (NASDAQ:CDLX) specializes in operating a digital advertising platform across the United States and the United Kingdom. This includes online, email, mobile applications, and various other real-time notifications. This platform enables marketers to deliver advertisements to customers and earn rewards, which are, in turn, funded by the fees they pay the company. It thus helps marketers connect with their potential customers across several financial institutions (FI) partners through their digital banking accounts.

Bridg also falls under the company’s operations. This customer data platform uses point-of-sale data to help partners undertake analytics and targeted loyal marketing while also calculating the impact of their marketing endeavors.

Cardlytics (NASDAQ:CDLX) operates a digital advertising platform with its partners and its own digital channels. These include mobile applications, online, email, and various real-time notifications. The Cardlytics platform allows marketers to deliver advertising content to customers and earn rewards, funded with a portion of the fee collected from them. The platform equips marketers to reach their potential customers across various financial institutions (FI) partners through their digital banking accounts.

The company has significant expansion and growth plans in place and is releasing new technology in three primary areas. These include the refinement and adoption of its Ad Decisiioning Engine (ADE), its Dynamic Marketplace launch, and its Automated Insights Dashboard. The Automated Insights Dashboard allows access to on-demand insights by advertisers, while the Dynamic Marketplace includes a transition to engagement-based pricing models. In addition, over 80% of the company’s banks are already jumping on the ADE bandwagon, with the rest expected to follow suit. These advancements are expected to offer the company a higher industry standing, appeal to advertisers, and boost growth.

Overall, CDLX ranks first among the 10 worst marketing stocks to buy now. While we acknowledge the potential of marketing companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CDLX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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