In this article, we discuss the 5 stocks Redditors are buying for 2022. If you want to read our detailed analysis of these stocks, go directly to the 10 Stocks Redditors are Buying for 2022.
5. Magnite, Inc. (NASDAQ:MGNI)
Number of Hedge Fund Holders: 26
Magnite, Inc. (NASDAQ:MGNI) owns and runs an independent advertising platform. As adtech giants like Google and Meta face the brunt of antitrust motions, smaller adtech companies have gained in importance this year. The surge in spending on digital by enterprise clients, in the wake of the pandemic, has also helped the stock. Reddit forums are full of discussions around Magnite as well.
Magnite, Inc. (NASDAQ:MGNI) recently posted earnings for the third quarter, reporting a revenue of $131 million, up more than 116% compared to the revenue over the same period last year and beating estimates by $16.7 million.
Among the hedge funds being tracked by Insider Monkey, Texas-based firm Nine Ten Partners is a leading shareholder in Magnite, Inc. (NASDAQ:MGNI) with 1.8 million shares worth more than $51 million.
In its Q1 2021 investor letter, Alger, an asset management firm, highlighted a few stocks and Magnite, Inc. (NASDAQ:MGNI) was one of them. Here is what the fund said:
“Magnite, Inc. was among the top contributors to performance. Magnite is an advertising technology company serving as a supply side platform for publishers. The platform helps publishers such as network television stations or cable news providers automate the sale of digital advertising inventory across different formats and channels, like desktop, mobile, video, audio, connected TV and over-the-top TV. Publishers monetize their digital advertising inventory by using Magnite’s platform to access a global market of ad buyers, including advertising agencies that use supply side platforms. Magnite also helps sellers decrease costs and protect their brands and user experience.
Magnite receives ad inventory from sellers and optimizes publishers’ revenue yields by processing the highest buyer bids. Currently, Magnite keeps approximately 14% of ad spend as revenue (i.e. take rate) and passes on the remainder of the ad spend to publishers. Magnite’s clients include many of the world’s leading publishers of websites and mobile applications and the company believes that its platform reaches approximately 1 billion individuals globally. Shares of Magnite outperformed in the first quarter due to stronger-than-expected fourth quarter results driven by a rapid recovery in digital advertising. Additionally, the company acquired SpotX, its largest competitor in connected TV. The combination makes Magnite the industry’s largest independent supply side platform and a much larger connected TV player. We believe connected TV is the most exciting part of the digital ad market and is in the early days of growth, including capturing market share from linear TV.”
