Magnite, Inc. (MGNI): A Bull Case Theory

We came across a bullish thesis on Magnite, Inc. (MGNI) on Stock Analysis Compilation’s Substack. In this article, we will summarize the bulls’ thesis on MGNI. Magnite, Inc. (MGNI)'s share was trading at $ 17.62 as of 12^th June. MGNI’s trailing and forward P/E were 80.09 and 17.61 respectively according to Yahoo Finance.

Magnite (MGNI), the largest independent programmatic sell-side platform (SSP), is strategically positioned to capitalize on two transformative trends in digital advertising: the rapid growth of Connected TV (CTV) and the potential antitrust-driven breakup of Google’s ad tech stack.

Following its merger with Telaria and the acquisition of SpotX, Magnite has emerged as a key enabler of CTV monetization, securing a significant contract with Netflix that underscores its differentiation. Despite commanding over 75% incremental EBITDA margins and a platform poised for expansion, the market continues to undervalue its position, assigning minimal credit to the Netflix partnership. If just $3 billion of Netflix’s expected $6 billion ad spend flows through Magnite at a 3.5–5% take rate, it could generate over $70 million in incremental EBITDA, translating to 30 %+ annual growth.

Moreover, Netflix’s success could catalyze broader programmatic adoption across media partners, amplifying upside. While Magnite DV+, its open internet SSP, is seeing steady growth, the real upside lies in potential market disruption. With Google ruled to have monopolized the supply side of display advertising, court-ordered remedies are imminent.

A forced separation of Google’s supply and demand ad tech operations could open the floodgates for independent SSPs like Magnite to reclaim lost market share and challenge Google’s dominance in high-CPM inventory. Notably, Google’s DV360’s recent integration with Magnite signals this shift has already begun.

Even before remedies are enforced, publishers may preemptively diversify away from Google to hedge risk. With a depressed valuation, high-margin business, and multiple catalysts converging, Magnite offers asymmetric upside with limited downside—an exceptionally compelling risk/reward setup.

Previously, we covered a bullish thesis on Magnite, Inc. (MGNI) by 19Doughboy98, which highlighted Magnite’s strength in CTV ad tech and strategic partnerships with Netflix and Disney. A newer thesis adds upside from antitrust action against Google, which could open up market share for independent SSPs like Magnite. Together, they frame MGNI as a high-margin, undervalued platform benefiting from both structural tailwinds and regulatory catalysts in digital advertising.

Magnite, Inc. (MGNI) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held Magnite, Inc. (MGNI) at the end of the first quarter which was 25 in the previous quarter. While we acknowledge the risk and 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 was originally published at Insider Monkey.