What Happened?
Shares of digital advertising platform Magnite (NASDAQ: MGNI) jumped 3.5% in the afternoon session after Benchmark reiterated its Buy rating and a $31.00 price target on the stock.
The research firm highlighted several growth opportunities for the advertising technology company, particularly in the Connected TV (CTV) market. Benchmark noted that advertising buys for CTV are increasingly shifting toward programmatic channels, a trend from which Magnite is poised to benefit as a market share gainer. The firm also pointed to Magnite's improving balance sheet, which it expects will soon be debt-free, and an active stock buyback program. Citing these positive factors, Benchmark reaffirmed Magnite as one of its top investment ideas, anticipating growth in the second half of 2025 and into 2026.
After the initial pop the shares cooled down to $25.58, up 2.9% from previous close.
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What Is The Market Telling Us
Magnite’s shares are extremely volatile and have had 33 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 5 days ago when the stock dropped 3.1% on the news that the stock fell amid a broader market downturn driven by profit-taking, tariff uncertainty, and rising bond yields. The decline coincided with a general market retreat, as major indices like the Nasdaq and S&P 500 also fell. Investor sentiment was dampened by several factors, including a federal court ruling that found most of President Trump's global tariffs were illegal, creating uncertainty over trade policy. Additionally, rising Treasury yields, with the 10-year yield climbing above 4.2%, intensified worries about high equity valuations. The historically weak performance of stocks in September also contributed to the cautious mood among traders.
Magnite is up 58.9% since the beginning of the year, and at $25.58 per share, it is trading close to its 52-week high of $26.52 from August 2025. Investors who bought $1,000 worth of Magnite’s shares 5 years ago would now be looking at an investment worth $3,997.
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