(cache)Magnite: Draws In The Big Players, 9x FCF (NASDAQ:MGNI)

1 Like

Summary

I believe that paying 9x forward free cash flow for Magnite is reasonable given its solid CTV growth prospects.
The balance sheet is not ideal, but $230 million of net debt is manageable relative to the company’s free cash flow generation.
The partnerships with Netflix, Roku, and other major players highlight its relevance and positioning in the highly competitive programmatic CTV market.
Even if growth moderates, Magnite’s free cash flow and improving operational efficiency make it attractive for long-term investors.

Robert Daly

The Magnite (NASDAQ:MGNI) investment thesis is not blemish-free. There are two aspects that should continue to weigh on its stock.

Firstly, there's an undeniable boast this year, particularly felt in Q3 2024, given the increased ad spend associated with the US

Symbol	Last Price	% Chg
MGNI Magnite, Inc.	12.06	-1.95%