As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the advertising & marketing services industry, including Ibotta (NYSE: IBTA) and its peers.

The sector is on the precipice of both disruption and growth as AI, programmatic advertising, and data-driven marketing reshape how things are done. For example, the advent of the Internet broadly and programmatic advertising specifically means that brand building is not a relationship business anymore but instead one based on data and technology, which could hurt traditional ad agencies. On the other hand, the companies in the sector that beef up their tech chops by automating the buying of ad inventory or facilitating omnichannel marketing, for example, stand to benefit. With or without advances in digitization and AI, the sector is still highly levered to the macro, and economic uncertainty may lead to fluctuating ad spend, particularly in cyclical industries.

The 6 advertising & marketing services stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 7.1% since the latest earnings results.

Ibotta (NYSE: IBTA)

Originally launched as a way to make grocery shopping more rewarding for budget-conscious consumers, Ibotta (NYSE: IBTA) is a mobile shopping app that allows consumers to earn cash back on everyday purchases by completing tasks and submitting receipts.

Ibotta reported revenues of $83.26 million, down 15.6% year on year. This print exceeded analysts’ expectations by 1.6%. Overall, it was a satisfactory quarter for the company with a beat of analysts’ EPS estimates but revenue guidance for next quarter missing analysts’ expectations.

Ibotta delivered the slowest revenue growth of the whole group. Unsurprisingly, the stock is down 26.4% since reporting and currently trades at $24.10.

Is now the time to buy Ibotta? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Taboola (NASDAQ: TBLA)

Often appearing as those "You May Also Like" or "Recommended For You" boxes at the bottom of news articles, Taboola (NASDAQ: TBLA) operates a digital platform that recommends personalized content to users across publisher websites, helping both publishers monetize their sites and advertisers reach target audiences.

Taboola reported revenues of $496.8 million, up 14.7% year on year, outperforming analysts’ expectations by 6.3%. The business had a stunning quarter with a beat of analysts’ EPS and revenue estimates.

Taboola scored the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 17.6% since reporting. It currently trades at $3.92.

Is now the time to buy Taboola? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Interpublic Group (NYSE: IPG)

With a history dating back to 1902 and roots in the McCann-Erickson agency, Interpublic Group (NYSE: IPG) is a marketing and communications holding company that owns agencies specializing in advertising, media buying, public relations, and digital marketing services.

Interpublic Group reported revenues of $2.14 billion, down 4.8% year on year, falling short of analysts’ expectations by 2.6%. It was a softer quarter as it posted a significant miss of analysts’ revenue estimates.

Interpublic Group delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 1.5% since the results and currently trades at $25.35.

Read our full analysis of Interpublic Group’s results here.

QuinStreet (NASDAQ: QNST)

Founded during the dot-com era in 1999 and specializing in high-intent consumer traffic, QuinStreet (NASDAQ: QNST) operates digital performance marketplaces that connect clients in financial and home services with consumers actively searching for their products.

QuinStreet reported revenues of $285.9 million, up 2.4% year on year. This result surpassed analysts’ expectations by 2.1%. Zooming out, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ revenue estimates but revenue guidance for next quarter meeting analysts’ expectations.

The stock is down 3.1% since reporting and currently trades at $13.44.

Read our full, actionable report on QuinStreet here, it’s free for active Edge members.

Magnite (NASDAQ: MGNI)

Born from the 2020 merger of Rubicon Project and Telaria, Magnite (NASDAQ: MGNI) operates the world's largest independent sell-side advertising platform that automates the buying and selling of digital advertising inventory across all channels and formats.

Magnite reported revenues of $179.5 million, up 10.8% year on year. This number topped analysts’ expectations by 0.9%. Overall, it was a satisfactory quarter as it also logged a narrow beat of analysts’ revenue estimates.

The stock is down 25.1% since reporting and currently trades at $13.36.

Read our full, actionable report on Magnite here, it’s free for active Edge members.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

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