At its current price, Collective Audience, Inc. (NASDAQ: CAUD) stock presents what can be best described as a bargain basement investment opportunity at current levels. And that's no exaggeration, especially after CAUD announced completing the business combination involving DLQ, Inc., a former subsidiary of Logiq, Inc (OTCQX: LGIQ), and Abri SPAC I, Inc., a special purpose acquisition company that previously traded on NASDAQ under the symbols $ASPA, $ASPAW, and $ASPAU that held an over $64 million market cap.
While the particulars get sorted, including the special dividend distribution of 3,762,000 shares of CAUD shares to Logiq stockholders of record on October 24, 2023, the over 78% drop in CAUD stock price shows that investors and market makers that are bearish on the combined potentials may have a distorted view of how powerful this alliance can be to capitalize on and maximize revenue-generating opportunities in an ad-tech market worth billions today and forecast to reach $2.9 trillion by 2031.
In other words, those taking advantage of an apparent disconnect between CAUD's current share price and assets and potential could benefit from a likely near-term path of least resistance for CAUD shares paved higher.
Capitalizing On A Massive Ad-Tech Market Opportunity
That bullish sentiment is warranted, especially with the adtech sector earning significant interest from both retail and institutional investors. The investor interest in the space and the companies positioned to benefit is justified, especially as more and more people and businesses are utilizing the inherent power of digital tools and AI to help them make better use of their ad budgets as well as help publishers to more effectively and quickly monetize their content. While many may be unfamiliar with how massive the sector is, those in it certainly aren't under-appreciating its size and potential, pointing to an adtech market valued at $748.2 billion in 2021.
While an enormous market today, it's getting bigger, with an expected CAGR of 14.7% into the next decade, increasing services and revenue-generating opportunities from a market that will eclipse the two-trillion dollar mark. That means the companies well-positioned today can be the biggest winners of tomorrow. CAUD is on that list. And deservedly so, considering the combined services and platform are specifically designed to identify, convert, and monetize the collective audience of leading brands and publishers.
That puts CAUD in the right markets with the right products at the right time. Proof of that is front and center, with many of the world's largest companies, including Meta (NASDAQ: META) and Google (NASDAQ: GOOG, GOOGL), which rely on ad revenues for top and bottom-line growth. There's plenty more. But the list of companies able to meet surging demand isn't as extensive. And that presents significant business opportunities for the ones that are.
In fact, there are significant revenue-generating opportunities to share. In an expected $2.9 trillion market, CAUD competitors like The Trade Desk (NASDAQ: TTD), PubMatic (NASDAQ: PUBM), and Magnite (NASDAQ: MGNI), as good as they are in their respective target markets, certainly can't handle the entirety of the market demand. Adding other niche-focused companies like Digital Turbine (NASDAQ: APPS) and DoubleVerify (NYSE: DV) helps but still leaves massive revenues for the taking. What others leave, and from competitive advantages, CAUD intends to earn.
Providing Better Digital Consumer Acquisition Solutions
And they have an excellent start of turning that ambition into income. The company is already a leading provider of digital consumer acquisition solutions, competing effectively against companies with market caps in the billions. That's no coincidence. As a U.S.-based provider of e-commerce and digital customer acquisition solutions that simplify digital advertising, its proof of concept and performance attracts the right eyes from being an innovative, data-driven, end-to-end provider with solutions facilitating access to data for activating campaigns across multiple channels.
Currently, CAUD's digital marketing business includes a holistic, self-serve adtech platform, a proprietary data-driven, and an AI-powered system that enables brands and agencies to advertise across thousands of the world's leading digital media and connected TV platforms. All of that's important. Remember, digital marketing is widely considered the optimal solution for companies to communicate with prospective and existing customers to create business and brand awareness. Moreover, its value extends because digital marketing provides an easy way for companies to get creative and stand out from competitors in congested markets. That combined value isn't going unnoticed.
It's led to significant adtech spending, with many companies targeting the customers' time spent on social media platforms like TikTok and Instagram. Those millions of people present just a part of the reach. Apps, retail media, and gaming environments put millions, even billions, of additional viewers' eyes in play, with adtech programs reaching them through retail media, connected television, and E-commerce channels that generate specific metrics and attribution models. As a rising player with a particular focus, CAUD is well-positioned to capitalize on these diverse market potentials by providing customers with the tools and abilities to bring their audience objectives to life quickly, efficiently, and effectively. Harnessing that combined power, CAUD provides the means for its clients to compete more effectively by creating a focused channel to its most valuable asset- their audience.
A Value Proposition Exposed
And providing that difference does more than benefit clients; it also benefits CAUD. In fact, from an investor perspective, the right way to appraise CAUD isn't based on a part but rather a sum of them. In that respect, current share prices expose a value disconnect, especially when recognizing the combined value of a newly fortified CAUD.
On that basis, CAUD presents a compelling value investment proposition. And positioning ahead of expected growth may be a wise consideration as a new era of internet and consumer landscapes make adtech an invaluable and necessary competitive tool. With its recent merger completed, CAUD is accelerating its mission to provide precisely those resources, facilitating reach to a digital audience for brands, publishers, and marketers that enable multi-channel exposure to drive brand awareness, traffic, and transactions.
All told, the CAUD value proposition is an attractive one. After all, having all the pieces in place to target a trillion-dollar market potential does more than expose unrecognized value; it allows CAUD to capture it. That difference more than matters; it provides investors with low-priced investment exposure to a company targeting a massive market opportunity. Seizing that opportunity ahead of CAUD reaching its potential may, therefore, also be timely.
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