11 Best AdTech Stocks to Buy According to Hedge Funds

7) Criteo S.A. (NASDAQ:CRTO)

Number of Hedge Fund Holders: 21

Criteo S.A. (NASDAQ:CRTO) is a global technology company that specializes in digital advertising and commerce media solutions. It supports businesses in reaching and engaging their target audiences, driving sales, and measuring the effectiveness of their campaigns.

Criteo S.A. (NASDAQ:CRTO)’s focus on becoming a comprehensive Commerce Media platform sets it apart from the broader AdTech sector. J.P. Morgan analyst Doug Anmuth believes that Criteo S.A. (NASDAQ:CRTO) continues to experience healthy growth in the Retail Media sector, with expectations that the addressable market should touch ~$50 billion by 2027. As per the analyst, the company remains focused on enhancing its offerings, which should fuel future demand and supply-side growth.

Criteo S.A. (NASDAQ:CRTO)’s strategic initiatives, which include leveraging AI throughout its ad stack and expanding inventory and client base, should drive its long-term growth. It offers solutions that unify access to ~225 retailers. This approach enables the company to complement major players such as Amazon in the retail media space. It addresses the fragmentation issue that many advertisers face when they try to reach consumers across multiple platforms.

With more and more retailers recognizing the value of monetizing digital properties, Criteo S.A. (NASDAQ:CRTO)’s solutions should see higher adoption. Also, the postponement of Google Chrome’s cookie deprecation until 2025 is expected to benefit Criteo S.A. (NASDAQ:CRTO) by providing additional time to adapt to a cookie-less advertising environment while continuing to garner revenue from the current business model.

ClearBridge Investments, an investment management company, released its Q2 2024 investor letter. Here is what the fund said:

“New positions in the quarter were from a variety of sectors. Criteo S.A. (NASDAQ:CRTO), in the communication services sector, provides digital advertising technologies that help drive clients’ e-commerce businesses. While the company was previously reliant on third-party cookies to help optimize its products, management has spent the past five years pivoting away from this technology and focusing on building a leading presence in the burgeoning retail media space. We believe this transformation has reached a tipping point, and that the inherent growth opportunities in this new end market represent a higher growth rate than is currently reflected in the company’s valuation.”