11 Best AdTech Stocks to Buy According to Hedge Funds

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6) Perion Network Ltd. (NASDAQ:PERI)

Number of Hedge Fund Holders: 21

Perion Network Ltd. (NASDAQ:PERI) offers digital advertising solutions to brands, agencies, and publishers in North America, Europe, and internationally. Wall Street believes that Microsoft Bing’s pullback on Perion Network Ltd. (NASDAQ:PERI)’s business operations has impacted its revenue outlook, which has impacted its stock price. The company’s stock saw a decline of over ~60% on a YTD basis. Also, the company’s advertising segment has been exposed to broader challenges, with Perion Network Ltd. (NASDAQ:PERI) experiencing a slump in demand for both video and display advertising.

That being said, Perion Network Ltd. (NASDAQ:PERI) now targets to help CMOs (Chief Marketing Officers), the people who control ~$700 billion of digital advertising budgets. The company expects this number to reach ~$1 trillion in the next 3 years. Since these CMOs are required to provide continuous ROI on advertising budgets, Perion Network Ltd. (NASDAQ:PERI)’s AI-driven technologies should be a standout. Its AI-driven solutions focus on streamlining the fragmented advertising ecosystem, laying emphasis on connected TV, digital out-of-home, and retail media.

Perion Network Ltd. (NASDAQ:PERI) aims to maintain positive cash flow and plans to continue making investments in technology. It expects advertising revenue growth to resume in Q1 2025 with gradual improvement throughout the year. Less than a year ago, the company launched its advanced Generative AI solution for audio ads. It is now expanding into audio advertising, with partnerships including Spotify and iHeart.

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