Adtech company PubMatic (PUBM) recently announced a multi-year integration of technology from Nvidia (PUBM) to leverage accelerated computing. This overhaul of the infrastructure enables the company to deliver artificial intelligence (AI) processing five times faster than traditional systems.
Investors welcomed this news, as PUBM stock rose 7.5% intraday on Oct. 8. Should you buy PUBM stock at this current juncture?
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PubMatic is a technology company based in Redwood City, California, that helps digital publishers and advertisers manage and grow their advertising businesses. Founded in 2006, it offers a cloud-based platform that connects publishers with advertisers through automated systems. PubMatic uses advanced technology, including machine learning, to optimize ad placements and increase revenue for its clients.
The company processes billions of ad impressions daily and supports various digital channels like desktop, mobile, video, and connected TV. Its flexible and scalable platform gives customers control over their ad inventory, making the digital advertising process more efficient and transparent. PubMatic’s continuous innovation and global presence set it apart in the digital advertising space. The company currently has a market capitalization of $363.5 million.
Due to revenue challenges, cautious future guidance, and volatility in the advertising space, PUBM stock has been on the decline. Over the past 52 weeks, the stock has dropped 45%, while it is down 43% year-to-date (YTD). PUBM stock had reached a 52-week low of $7.01 in August, but shares are up 19% from that level. Over the past five days, the stock is also up 1.5%.
As of this writing, PubMatic has a price-to-sales ratio of 1.25 times, which is slightly lower than the industry average.
On Aug. 11, PubMatic reported its second-quarter results for fiscal 2025. Revenue increased 6% year-over-year (YOY) to $71.1 million. Additionally, PubMatic reported that its CTV revenue grew more than 50% YOY, while revenue from omnichannel video, including CTV, grew 34% YOY and accounted for 41% of total revenue. PubMatic’s net dollar-based retention ratewas 102% for the trailing 12 months ended June 30.
