3. Criteo S.A (NASDAQ:CRTO)
Short Interest: 3.85%
Number of Hedge Fund Holders: 18
Criteo SA (NASDAQ:CRTO) is a France-based company that specializes in digital performance marketing and ranks third on our list of the worst adtech stocks to buy now. The company’s solution comprises the Criteo Engine, its data assets, advertiser and publisher platforms, and access to inventory. The Criteo Engine comprises global hardware and software infrastructure and several machine learning algorithms, such as recommendation, prediction, and bidding. Criteo Engine can deliver advertisements through several marketing channels and formats, such as native advertising banners, display advertising banners, and marketing messages delivered to opt-in emails. These advertisements are delivered on all screens and devices, including mobile web browsers on smartphones and tablets, web browsers on laptops and desktops, and mobile applications. Criteo (NASDAQ:CRTO) operates in around 90 countries and manages operations through a network of more than 30 international offices located in the Americas, the Asia-Pacific region, and Europe.
The company is running on solid financials, focusing on becoming a Commerce Media powerhouse. It recorded double-digital organic growth for the third consecutive quarter. The primary drivers of these positive trends are the company’s efforts to focus on consumers throughout the buyer journey, leverage our unique commerce data assets and AI for growth, and streamline supply-and-demand side relationships.
Criteo (NASDAQ:CRTO) also focuses on establishing partnerships for growth, and has worked with Microsoft to bring high-quality native advertising to commerce audiences. It is now expanding its partnership with Microsoft to its Retail Media suite in a two-fold collaboration. Firstly, the company is set to bring Microsoft Advertising’s substantial demand to its global network of 225 retailers. This will enable them to look into budgets from Microsoft’s 500,000+ advertisers, concurrently expanding the reach and value of their inventories. Secondly, the company was selected by Microsoft to act as its preferred on-site partnership.
Criteo (NASDAQ:CRTO) is working to consolidate the Retail Media supply to its platform, with the retailer’s transition from Microsoft Advertising to Criteo’s platform expected to begin in 2025. The collaboration is expected to solidify the company’s position as an adtech leader, creating a unified access for all media buyers and gaining further competitive edge.
The company also has future growth plans in place, with the aim to increase retail monetization and advertiser outcomes throughout the consumer journey. It is also looking to leverage predictive modeling for privacy-increasing targeting, streamline creative formats and campaign workflows, and product recommendations. Criteo (NASDAQ:CRTO) is also increasing its market share gain in Retail Media, experiencing a 30% year-over-year growth in Q2. It holds a leading market footprint, with around 65% of the top 30 retailers in the Americas and approximately 50% of the top 30 retailers in EMEA. Furthermore, the company is partnering with new retailers in the US, such as Dollar General Corp, Belk, and QVC.
