11 Best AdTech Stocks to Buy According to Hedge Funds

9) PubMatic, Inc. (NASDAQ:PUBM)

Number of Hedge Fund Holders: 13

PubMatic, Inc. (NASDAQ:PUBM) is a digital advertising technology company, providing a cloud-based platform for real-time programmatic advertising. Its solutions are designed to help publishers in maximizing the value of their digital advertising inventory.

Since Donald Trump’s victory in the US Presidential election, the buzz is that brands that earlier paused advertising spending on X are planning to resume it. Now, the question is how increased ad spending on X will be beneficial for PubMatic, Inc. (NASDAQ:PUBM). When it comes to digital advertising, publishers look to monetize their content via selling ad slots. To put things into perspective, advertisers buy space and publishers sell it. Now, since X is planning to sell ad slots, it requires a technology partner.

This is where PubMatic, Inc. (NASDAQ:PUBM) will benefit. The company provides a supply-side platform on which advertisers can bid for space. Business Insider reported that X has just reached out to PubMatic, Inc. (NASDAQ:PUBM) to maximize its ad revenue. Industry experts believe that advertising demand is expected to pick up for X, and this should offer benefits to PubMatic.

Therefore, Supply Path Optimization (SPO) provides a significant opportunity for PubMatic, Inc. (NASDAQ:PUBM) to strengthen its market position and fuel long-term growth. With advertisers and publishers seeking efficient and transparent ways to transact, SPO initiatives continue to act as a focal point. How SPO can fuel the company’s growth trajectory?

First, increased investments can result in enhanced market share as advertisers consolidate their spending through preferred supply paths, favoring PubMatic, Inc. (NASDAQ:PUBM). Next, supply path optimization can lead to improved overall efficiency of the operations, resulting in better margins and profitability. Evercore ISI increased its price objective on the shares of PubMatic, Inc. (NASDAQ:PUBM) from $20.00 to $22.00, giving an “Outperform” rating on 13^th November.