15 Best Advertising Stocks to Buy According to Hedge Funds

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9) Cardlytics, Inc. (NASDAQ:CDLX)

Number of Hedge Fund Holders: 12

Cardlytics, Inc. (NASDAQ:CDLX) is a financial technology (fintech) company that specializes in advertising and marketing solutions in banking and financial platforms.

Cardlytics, Inc. (NASDAQ:CDLX) is transitioning to engagement-based pricing, with 84% of new advertisers choosing this model, which is expected to optimize campaign performance and provide faster feedback. The company’s engagement-based pricing model is a revenue model in which the company charges advertisers based on specific consumer actions that indicate engagement with an advertisement or offer. Therefore, this model focuses on aligning costs with actual user activity and performance. It will ensure that advertisers pay for measurable results rather than just impressions or clicks.

Cardlytics, Inc. (NASDAQ:CDLX) expects the majority of its advertisers to transition to engagement-based pricing by next year’s end. This will help the company optimize campaign performance through faster engagement-based feedback. The engagement-based pricing model is expected to strengthen Cardlytics, Inc. (NASDAQ:CDLX)’s market position, giving them a strong foundation for future growth.

The company expects improved financial performance and results in Q4 2024 due to plans to roll out new partnerships with financial institutions. For example, the major deal with American Express is expected to fuel revenue by 30%. However, this impact is expected mostly in 2025 and Q4 2024 earnings have started showing some signs of renewed growth.

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