Technology Sector Ideas

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>>> Perion Network (PERI) may not be a household name, but the ad tech company already has strong returns, up nearly 400% over the last three years. And it was the only ad tech stock to post a positive return last year.


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Perion occupies a unique position in the ad tech space through its intelligent hub, which connects ad buyers and sellers to optimize ad buys and placements. The technology is based on machine learning and is highly scalable, allowing the company to earn higher margins as it grows.

The company also offers premium features like in-game ads during live events and a "connected cart" that allows retailers to update the products being advertised according to conditions like inventory and weather.

Perion is also a preferred partner of Microsoft's Bing, which could be an especially valuable relationship if the ChatGPT-powered version of Bing gains traction in search.

Perion's results speak for themselves. Revenue in the second quarter rose 22% to $178.5 million, and it continues to gain leverage with adjusted earnings per share jumping from $0.51 to $0.84.

The company is seeing solid growth in both search advertising and display advertising, driven by the Bing partnership, and growth in connected TV, which jumped 104% to $7.2 million in the quarter.

However, the best reason to invest in Perion might be its discount valuation, trading at a price-to-earnings ratio of just 13.5. There's still a lot of room for growth in ad tech, and if Perion continues to execute its strategy, the stock could be a big winner.

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