Magnite (MGNI) Ends 3-Day Run as Funds Flock to AI

We recently published 10 Stocks Lost This Big While Wall Street Celebrates. Magnite, Inc. (NASDAQ:MGNI) is one of the worst performers on Monday.

Shares of Magnite snapped a three-day winning streak on Monday, shedding 6.79 percent to finish at $24.16 apiece as investor funds fled to artificial intelligence stocks amid fresh developments surrounding the booming sector.

Additionally, investors sold off positions amid lingering concerns for its legal battle with Google LLC, having filed a new lawsuit against the latter last week.

In a regulatory filing, Magnite, Inc. (NASDAQ:MGNI) said that it sued Google and sought financial damages in light of the U.S. District Court’s ruling that Google had engaged in unlawful anticompetitive practices with respect to certain ad tech markets.

It acknowledged Google as a significant participant in the digital advertising ecosystem, underscoring that it is both a major partner and competitor to Magnite, Inc. (NASDAQ:MGNI), where a significant portion of its revenue comes from.

“Magnite was founded to help publishers thrive by maximizing their advertising yield through innovative technology, trusted guidance, and a transparent marketplace that efficiently connects them to buyers, ” Magnite, Inc. (NASDAQ:MGNI) CEO Michael Barrett said.

“For years, Google undermined our ability to execute on this mission with practices that favored its own business over the health of the open web, causing harm to publishers, advertisers, and partners like us. We look forward to a future that promotes healthy competition, ongoing innovation, and value creation for the ecosystem as a whole,” he noted.

While we acknowledge the potential of MGNI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.