Magnite (MGNI) Stock Forecast & Price Target

Magnite Inc. reported a significant 23% year-over-year increase in CTV segment net revenues to $77.9 million in 4Q24, driven by strong demand from major industry players and political advertising. The company's preliminary guidance indicates a positive EBITDA margin improvement of at least 100 basis points, coupled with expectations of 15-20% growth in adjusted EBITDA in a normalized environment, suggesting solid operational efficiency. With take rates stabilizing and potential for revenue growth in the mid-teens for CTV ex-TAC, Magnite appears well-positioned to enhance its financial performance moving forward.

Magnite Inc reported fourth-quarter net revenues (excluding TAC) of $180.2 million, which represented a 9% year-over-year increase but fell 2% short of expectations, while adjusted EBITDA also grew by 9% year-over-year to $76.5 million, missing estimates by 5%. Additionally, the company's dynamic video revenue growth was notably disappointing, achieving only 1% year-over-year growth, indicating struggles in a key revenue segment. Furthermore, management's revised fiscal year 2025 estimates reflect lower projections for both revenue and adjusted EBITDA, suggesting ongoing uncertainties in the macroeconomic environment that may further pressure the company.