15 Best Advertising Stocks to Buy According to Hedge Funds

4) Magnite, Inc. (NASDAQ:MGNI)

Number of Hedge Fund Holders: 20

Magnite, Inc. (NASDAQ:MGNI) operates an independent omni-channel sell-side advertising platform in the US and internationally.

Magnite, Inc. (NASDAQ:MGNI)’s focus on emerging advertising formats should fuel revenue growth by expanding its market presence and meeting the diverse needs of advertisers and publishers. The company continues to invest in formats such as digital out-of-home (DOOH), audio, podcasts, and native ads. These emerging formats support advertisers looking to engage consumers in non-traditional and innovative ways. This broadens Magnite, Inc. (NASDAQ:MGNI)’s revenue streams.

The emerging formats enable the company to adapt to industry changes, like reduced third-party data availability because of privacy regulations. Formats such as podcasts and DOOH are dependent on contextual targeting and first-party data, aligning with Magnite, Inc. (NASDAQ:MGNI)’s expertise in audience curation. The DOOH advertising market continues to expand at a rapid pace as digital screens proliferate in public spaces including malls, transit hubs, and outdoor billboards.

The global DOOH advertising market was valued at US$24.32 billion in 2023 and should reach US$74.23 billion by 2032 (as per Straits Research). By entering this market, Magnite, Inc. (NASDAQ:MGNI) can tap into new revenue streams and cater to advertisers seeking large-scale visibility.

Choice Equities Capital Management recently released its third-quarter 2024 investor letter. Here is what the fund said:

“Magnite, Inc. (NASDAQ:MGNI) and CROX – Magnite, Inc. and Croc’s Inc. remain holdings in the portfolio and were recently discussed in detail on the Yet Another Value Blog podcast, which can be found here: YAVB podcast. As discussed herein, both remain well-positioned in their respective industries and represent attractive values on anticipated cash flows in years to come. Magnite, as highlighted, looks attractive on its own merits, though shares could become particularly interesting should a handful of industry anti-trust events break their way.”