Taboola vs. Magnite: Which Ad-Tech Stock Should Be in Your Portfolio?

The digital advertising industry is undergoing a swift transformation, fueled by advances in AI, privacy-first regulations and a broader range of media channels. As a result, digital ad spending continues to expand, with marketers reallocating budgets from traditional formats to online platforms such as social media, connected TV, search and retail media networks. Against this backdrop, both Taboola.com Inc. TBLA and Magnite MGNI are striving to secure a distinct foothold.

Taboola stands out as a global leader in performance advertising through its Realize platform, connecting thousands of advertisers to approximately 600 million daily users. In contrast, Magnite operates as a leading supply-side platform (SSP), helping publishers manage and monetize ad inventory across channels including streaming, online video, display and audio. 

As per Precedence Research, global digital ad spending was valued at $600 billion in 2024 and is forecast to reach $1.5 trillion by 2034, at a CAGR of 9.47% between 2025 and 2034. With both companies poised to tap into this expanding market, the question arises: which stock offers a more attractive investment proposition?

Let’s closely look at the fundamentals of these stocks. 

The Case for TBLA

Taboola has transitioned from its native advertising origins to a broader focus on the performance advertising market, including display and commerce formats. This strategic shift reflects rising demand for all-encompassing performance solutions beyond search and social media platforms. With advertising budgets moving steadily from traditional channels to digital, and online shopping expected to grow around 8% annually through 2027—double the rate of physical retail—Taboola is well-positioned to benefit.

The company’s growth approach centers on enhancing Realize’s capabilities and refining its go-to-market strategy by structuring its sales organization by industry verticals and targeting key customer profiles and new supply partners offering valuable advertiser data. This is expected to translate into solid performance. In the first quarter of 2025, Taboola achieved 3% revenue growth, a 53% increase in adjusted EBITDA and a 48% improvement in operating cash flow, growing its cash balance to over $216 million with low leverage.

Taboola expects 2025 revenues between $1.84 billion and $1.89 billion, gross profit between $536 million and $552 million, adjusted EBITDA between $201 million and $209 million, and net income of $122 million to $128 million. Management remains focused on growth while returning capital to shareholders. R&D investment continues to rise—around 8% of 2024 revenues—aimed at advancing AI features such as Max Conversions and Abby. In February 2025, Taboola’s board expanded its share repurchase authorization by $200 million, bringing the total to $240 million, supported by solid free cash flow and improving profitability.

The Case for MGNI

Magnite has positioned itself as a key player in the rapidly expanding Connected TV (CTV) ad-tech sector, operating the largest independent SSP for programmatic advertising. Processing billions of impressions monthly, Magnite’s growth is driven by its SpringServe ad server and streaming SSP platform. The company has scaled meaningfully through mergers and strategic alliances, with its partnership with Netflix standing out as a major growth catalyst.

Magnite’s leadership in CTV, where ad spend is projected to hit $33.4 billion in 2025 per Statista, offers a clear competitive edge. High-profile partnerships with Roku, LG, Warner Bros. Discovery, Fox, Vizio, Walmart and Netflix enhance its market position. Additionally, increased regulatory scrutiny on Google may shift publisher preference toward neutral, independent platforms like Magnite, benefiting its DV+ business.

Its strong operational execution is reflected in stable EBITDA margins and growing cash flow. Magnite’s strategy emphasizes continuous investment in technology and expansion of its sales organization, capitalizing on advertisers’ growing shift toward CTV as streaming becomes more mainstream. The company operates across North America, Australia and Europe, with a growing footprint in Asia and South America, supporting global scale and planned international expansion. That said, Magnite’s reliance on a few major clients, including Netflix and Disney, introduces revenue concentration risk.

Magnite sees the antitrust ruling against Google as a potential game-changer for the open Internet, creating meaningful growth opportunities for its DV+ business. Despite being the second-largest player in this segment, Magnite currently holds only a mid-single-digit market share, leaving ample room for expansion.

Estimates for TBLA and MGNI

The Zacks Consensus Estimate for TBLA’s 2025 revenues and EPS implies a year-over-year increase of 5.7% and 3,900%, respectively. There has been no change in estimates in the past 30 days. TBLA has a Growth Score of A.

The Zacks Consensus Estimate for MGNI’s 2025 revenues and EPS implies a year-over-year increase of 14% and 15.5%, respectively. There has been no change in estimates in the past 30 days. MGNI has a Growth Score of B.

Are TBLA and MGNI Shares Expensive?

Taboola is trading at a forward 12-month price-to-earnings multiple of 19.9, higher than its median of 13.1 over the last three years. Magnite is trading at a forward 12-month price-to-earnings multiple of 45.5, higher than its median of 30.7 over the last three years.

Conclusion

Taboola is a global leader in performance advertising, helping businesses grow across the open web. It believes that its Realize platform poises it well to tap the $55 billion market dominated by Meta, Google and Amazon, also called the “walled garden.” 

Magnite is a leading independent sell-side advertising platform. It is a pivotal player in the expanding programmatic advertising space, especially within the rapidly growing connected TV segment. Magnite is strategically positioned in a high-growth segment of digital advertising, backed by robust partnerships and improving financials.

MGNI shares have gained 51% year to date, while those of TBLA have lost 2% in the same time frame. Though TBLA and MGNI carry a Zacks Rank #3 (Hold) each, MGNI’s significant price appreciation makes it appear as a safer bet.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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