Here’s Why Magnite (MGNI) Declined in Q3

Madison Investments, an investment advisor, released its “Madison Small Cap Fund” third-quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund (Class Y) declined 6.1% compared to a 5.1% decline for the Russell 2000 Index. Year-to-date, the fund is up 4.3% compared to 2.5% for the index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Madison Small Cap Fund highlighted stocks like Magnite, Inc. (NASDAQ:MGNI) in the third quarter 2023 investor letter. Headquartered in New York, New York, Magnite, Inc. (NASDAQ:MGNI) is an independent sell-side advertising platform. On October 24, 2023, Magnite, Inc. (NASDAQ:MGNI) stock closed at $7.13 per share. One-month return of Magnite, Inc. (NASDAQ:MGNI) was -2.99%, and its shares lost 3.65% of their value over the last 52 weeks. Magnite, Inc. (NASDAQ:MGNI) has a market capitalization of $976.518 million.

Madison Small Cap Fund made the following comment about Magnite, Inc. (NASDAQ:MGNI) in its Q3 2023 investor letter:

“GOGO Inc., Magnite Inc., and Model N Inc. were our weakest performers in the quarter. Magnite, Inc. (NASDAQ:MGNI) provides the underlying technology that makes advertising online possible. It is poised to capitalize on the massive shift in advertising dollars that is taking place, away from linear TV (Broadcast, Cable, and Satellite) to Connected TV or CTV (ad supported streaming services like Netflix and Hulu). Although the opportunity is large, it is still early in the game, and the company is experiencing some near-term growing pains as their outlook for the balance of the year disappointed investors due to the writers and actors strike. The UAW strike also impacted auto advertisement. We believe these are short-term issues and MGNI’s competitive position is getting stronger.”

Magnite, Inc. (NASDAQ:MGNI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Magnite, Inc. (NASDAQ:MGNI) at the end of second quarter which was 14 in the previous quarter.

We discussed Magnite, Inc. (NASDAQ:MGNI) in another article and shared Choice Equities Capital Management’s views on the company. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.