MGNI - (Formerly RUBI) - This stock has completely blown up well in excess of my wildest expectations. The stock did hit $10 right before the pandemic in 2020, and has since taken off as the next TTD / CTV darling. The stock was trading at $5-$6 in September, and now at roughly 10x that price in a mere 5 months. I've never been part of a run like this before, but it sure has been fun. I started selling shares and calls against the position a few weeks back and am now fully covered. Well into the overvalued range, but hey, I'll take it...
PERI has similarly done well in the space and trades at a discount to MGNI, might still be an opportunity there. But I've moved my attention over to another ad-tech play with a video and CTV focus, Tremor International over in the UK. Their CTV business is growing at a much faster clip and the total business actually generated more in EBITDA in 2020 than Magnite. Yet, while Magnite is valued at $6 billion+, Tremor sports a relatively skinny valuation of $1 billion...
Tremor trades in the UK, but has a US ticker TTTPF that allows US investors to get exposure. I've shifted half my proceeds from MGNI over to Tremor with the hopes of Tremor getting to at least 1/3 to 1/2 of the relative valuation of Magnite, which would be more than a double from the current valuation...
