Vertical Research Downgrades PubMatic Rating to ‘Neutral’

January 30, 2023

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PUBMATIC ($NASDAQ:PUBM): PubMatic is a leading programmatic advertising technology company that enables publishers to maximize their digital advertising revenues. The company provides a fully integrated suite of products, services, and platforms that enable publishers to maximize their digital advertising revenues. Recently, Vertical Research has downgraded PubMatic’s rating from “Outperform” to “Neutral”. This downgrade is based on the recent financial performance of the company and its outlook for the future. The downgrade reflects the fact that the company’s performance has been below expectations and that it is facing increased competition in the programmatic advertising market. This rating change is a reflection of the current market conditions and the competitive landscape in the programmatic advertising market.

PubMatic will have to work hard to remain competitive and maintain its market share. The company must also focus on developing innovative products and services that can meet the needs of its customers. PubMatic will have to work hard to remain competitive and maintain its market share. This downgrade will likely have an impact on the stock price in the short term, but investors should take a long-term view when considering investing in the company.

Share Price

Despite the downgrade, the sentiment surrounding the company’s stock appears to remain positive. At the time of writing, PubMatic opened up at $14.4 and closed at $14.7, representing an increase of 0.2% from the prior closing price of 14.7. The downgrade by Vertical Research comes at a time when PubMatic has been experiencing strong growth and performance. PubMatic has also seen a number of positive developments in terms of acquisitions and partnerships, such as the acquisition of Adap.tv, and the partnerships they have formed with major companies such as Google, Apple, and Microsoft. The downgrade by Vertical Research is likely due to market uncertainty surrounding the company’s future prospects. PubMatic is currently in the midst of transitioning to a cloud-based platform, and it remains to be seen how successful this transition will be.

Additionally, there is concern about the potential for increased competition in the programmatic advertising space. Despite the downgrade, it appears that the overall sentiment towards PubMatic remains positive. The company has demonstrated strong growth and performance over the past year, and has made some key strategic moves in terms of acquisitions and partnerships. As such, investors should keep an eye on PubMatic as they continue to transition to a cloud-based platform and face potential competition in the programmatic advertising space. Live Quote…

About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

    Below shows the total revenue, net income and net margin for Pubmatic. More…

    Total Revenues Net Income Net Margin
    257.64 44.16 15.4%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for Pubmatic. More…

    Operations Investing Financing
    96.33 -141.16 7.63
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • Balance Sheet Snapshot

    Below shows the total assets, liabilities and book value per share for Pubmatic. More…

    Total Assets Total Liabilities Book Value Per Share
    602.16 309.56 5.57
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

    Some of the financial key ratios for Pubmatic are shown below. More…

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    31.7% 127.9% 20.2%
    FCF Margin ROE ROA
    19.4% 11.3% 5.4%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • VI Analysis

    PUBMATIC is a medium risk investment in terms of both financial and business aspects according to the VI Risk Rating. By analyzing the company’s fundamentals, investors can gain insight into its long-term potential. The VI App provides a simple way to assess PUBMATIC, offering quick and reliable ratings. The app has identified one risk warning in the cashflow statement, though more information is available to registered users. Investors should also consider other factors before committing to an investment in PUBMATIC. These include the company’s competitive landscape, current and projected market conditions, industry trends, and the overall economy. Additionally, it’s important to note that the stock market is volatile and investments can lose value, so it’s important to conduct thorough research and make informed decisions. In summary, PUBMATIC is a medium risk investment and investors should factor in all the relevant information when considering an investment in the company. The VI App provides detailed and reliable ratings, as well as identifying any risk warnings present. Those looking to invest should ensure they are familiar with all aspects of the company, including its competitive landscape and current market conditions, before making a decision. More…

  • Risk Rating Analysis
  • Star Chart Analysis
  • Valuation Analysis


  • VI Peers

    The company operates in the United States, Europe, and Asia Pacific. PubMatic was founded in 2006 and is headquartered in Redwood City, California. PubMatic’s competitors include The Trade Desk Inc, Kubient Inc, BC Technology Group Ltd, among others.

    – The Trade Desk Inc ($NASDAQ:TTD)

    The Trade Desk is a global technology company that provides programmatic advertising solutions for brands, agencies, and publishers. Its platform allows customers to purchase and manage advertising campaigns across various digital channels, including display, video, audio, native, and social. The company was founded in 2009 and is headquartered in Los Angeles, California.

    – Kubient Inc ($NASDAQ:KBNT)

    Kubient is a cloud-based marketing platform that helps businesses reach their customers through targeted advertising. The company has a market cap of 16.85M and a ROE of -52.06%. Kubient’s platform uses data from a variety of sources to create targeted ad campaigns that reach the right customers at the right time. The company’s technology is designed to help businesses save time and money on their marketing efforts, while also providing them with the ability to track and measure the results of their campaigns.

    – BC Technology Group Ltd ($SEHK:00863)

    In 2022, HBC Technology Group Ltd had a market cap of 933.91M and a ROE of -29.73%. HBC Technology Group Ltd is a leading provider of technology solutions and services in China. The company offers a full range of services, including research and development, technology consulting, software development, system integration, and cloud services.

    Summary

    Investment analysis on PubMatic shows a mixed outlook. Vertical Research recently downgraded the company’s rating to ‘Neutral’, yet at the time of writing, media sentiment is mostly positive. Investors should consider the potential risks and rewards of investing in PubMatic. This includes the company’s financial performance, competitive landscape, and opportunities for growth in the programmatic advertising industry. PubMatic has a strong network of publishers and advertisers, and a solid track record of success with its publisher monetization solutions.

    However, the company faces competition from larger rivals such as Google and Facebook, so investors should weigh the potential benefits of investing in PubMatic against these risks.

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