Rosenblatt Securities Initiates a Buy Rating on Magnite (MGNI)
Protect Your Portfolio Against Market Uncertainty
Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter.
Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox.
Crockett covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Comcast, and Stagwell. According to TipRanks, Crockett has an average return of 4.9% and a 53.01% success rate on recommended stocks.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Magnite with a $19.67 average price target.
Based on Magnite's latest earnings release for the quarter ending December 31, the company reported a quarterly revenue of $193.97 million and a net profit of $36.41 million. In comparison, last year the company earned a revenue of $186.93 million and had a net profit of $30.91 million
Based on the recent corporate insider activity of 102 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MGNI in relation to earlier this year. Last month, Brian Gephart, the CAO of MGNI sold 6,250.00 shares for a total of $100,000.00.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNBC
3 hours ago
- CNBC
Apple needs to diversify its supply chain and get out of Trump's crosshairs, says Barton Crockett
CNBC's Steve Kovach with Barton Crockett, Rosenblatt Securities senior research analyst, join 'The Exchange' to discuss Apple as CEO Tim Cook heads to the White House and has committed to investing an additional $100 billion into the U.S.
Business Insider
15 hours ago
- Business Insider
Knockout Results Propel META Stock into Uncharted Territory
Meta Platforms (META) delivered blowout quarterly results last week, sending its stock soaring above its key $700 barrier on the back of massive growth in users, ad revenue, and profitability. In fact, META stock has not only spiked above $775 per share, but is also stepping up a gear and consolidating its newly found gains on substantial volume. Some Wall Street analysts, including the likes of Barton Crockett from Rosenblatt Securities, are now targeting $1,086 per share within 12 months. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. AI is the real engine behind the scenes—driving better conversions, personalizing content, and powering tools that help advertisers scale effortlessly. Meanwhile, Meta continues to improve operational efficiency, turning innovation into growing profits without ballooning expenses. Despite all this momentum, I believe the market still undervalues the company. That's why I remain stoutly Bullish on META, which has long been my largest holding by far. Still Growing Like It's 2010 Meta's Q2 numbers feel like a throwback to 2010, when the company was still in its startup phase. For starters, Meta's user base is still ballooning, which is nuts for a company this massive. The report saw daily active users across Facebook, Instagram, WhatsApp, and Threads hit 3.48 billion, up 6% year-over-year, according to TipRanks data. For context on the pace, that's like adding the population of Canada every year. This growth fueled Meta's ad engine, which churned out $46.56 billion in ad revenue, a 21% jump. In fact, ad impressions rose 11%, and the average ad price climbed 9%, indicating that Meta is squeezing more value from every user. AI was once again the wizard behind this quarter's success. On the earnings call, Mark Zuckerberg raved about how AI tools like Advantage+ boosted Reels conversions by 5% and time spent on Instagram by 6%. CFO Susan Li highlighted AI-driven ad translations, letting advertisers auto-translate captions into 10 languages, which spiked performance in early tests. These tools are making ads pop, especially for small businesses scaling up fast. Clearly, the engagement boost made possible by AI is even more stunning when actioned by a mature company at scale. Instagram Reels saw a 24% surge in time spent, thanks to AI-powered recommendations fine-tuning what users see. META's other notable social media brand — Threads — is also gaining traction, with 35% more time spent compared to last year. It makes you wonder how long Meta will be able to keep expanding its audience, all while keeping users increasingly glued, which, in turn, means more ads served and more revenue per user (ARPU hit $49.63, up 11.28%). It certainly doesn't look like this trend is going to fade out anytime soon. AI Creates Margin Magic at META The real standout in Meta's Q2 report is that, alongside exceptional revenue growth, the company is becoming remarkably lean. Operating margin surged to 43%, up from 38% a year ago, driving operating income to $20.44 billion—a 38% jump. Expenses rose only 12% to $27.08 billion despite heavy AI investments, while headcount declined 1% to 75,945. In short, Meta is doing more with less, with AI sitting at the heart of this transformation. On the earnings call, CFO Susan Li highlighted AI tools like Advantage+ and Andromeda, which boosted ad conversions by 5% on Instagram and 3% on Facebook, cutting costs for both Meta and advertisers while driving better returns. She also pointed to AI-powered image expansion tools that help small businesses create polished ads on tighter budgets, further reducing operational overhead. This efficiency fueled a 36% surge in net income to $18.34 billion, with EPS climbing to $7.14. From ad delivery to content moderation, AI is streamlining everything, allowing Meta to scale without runaway costs. It's as if they've unlocked a profitability cheat code—and the payoff is happening right now, not years down the line. META is Misunderstood by Wall Street Here's the funny thing about META: the stock is currently trading at a forward P/E of around 26.7 —a surprisingly low valuation for a company that's delivered a 28% EPS CAGR over the past five years and just posted a 38% Q2 jump in EPS. Analysts have seemingly underestimated Meta's performance potential. At the start of the year, Wall Street projected just 5–6% EPS growth for 2025. Now, after back-to-back quarters of 35%+ EPS growth, they've bumped that forecast to 17%—yet that still implies virtually no growth in the second half of the year. That disconnect doesn't add up. Given the company's momentum and track record, I believe META stock remains significantly undervalued. Is META a Good Stock to Buy Now? Wall Street remains highly bullish on Meta, with the stock carrying a Strong Buy consensus rating based on 41 Buy and three Hold recommendations over the past three months. Notably, not a single analyst rates the stock a Sell. META's average stock price target of $872.73 suggests ~12% upside from current levels. META is Firing on All Cylinders All in all, Meta just delivered one of its strongest quarters to date—combining massive user growth, cutting-edge AI-powered ad performance, and expanding margins with ease. The company is clearly firing on all cylinders, yet the market continues to treat it like a slow-moving, mature tech name. That disconnect is precisely why I'm staying long. With AI driving real, tangible value right now and a valuation that doesn't reflect this momentum, META remains my highest-conviction position. Honestly, I believe the best is still to come.
Yahoo
6 days ago
- Yahoo
Meta's Q2 Results Turn Skeptics Into Believers As Capex Narrative Shifts
Following an exceptionally strong second-quarter earnings report and optimistic third-quarter guidance issued on Wednesday, Meta Platforms (NASDAQ:META) has seen a wave of positive reratings and increased price forecasts from prominent Wall Street analysts. The social media behemoth's robust financial performance, particularly its resurgent advertising growth and bold commitment to artificial intelligence (AI) investments, has largely assuaged prior investor concerns about escalating capital expenditures. Meta's stock surged more than 11% on Thursday, a day after the company reported quarterly results, reflecting renewed confidence in its strategic sentiment turned markedly positive following the earnings release, with firms including Rosenblatt, Bank of America, Morgan Stanley, Cantor Fitzgerald, Wedbush, and KeyBanc all reaffirming bullish stances on the stock while raising their respective price forecasts. Rosenblatt: A Turning Point Rosenblatt analyst Barton Crockett maintained Meta Platforms with a Buy and raised the price forecast from $918 to $1086. Barton Crockett views Meta's second-quarter 2025 as a pivotal inflection point, marked by a strong rebound in ad growth and a bold expansion in capital investment. He highlights the return to 20%+ ad growth on a $160 billion base as a key driver supporting capital expenditures trending toward $100 billion. Crockett sees Meta's AI investments as key growth accelerators, driving more ad conversions, deeper engagement on Facebook and Instagram, and adoption of video generation tools by nearly 2 million advertisers. Even hardware efforts like the Ray-Ban smart glasses are gaining traction, with sales up 200% in the first half of 2025. Looking forward, he models $68 billion in capex for 2025 and $97 billion for 2026, with expenses climbing 21% and 28% respectively. However, he argues that this investment cycle is generating meaningful returns. He also points to Meta's AI vision, centered on 'Personal Superintelligence', as a strategic long-term opportunity that could further boost investor sentiment. Bank of America: AI Strategy Is Paying Off Bank of America Securities analyst Justin Post maintained Meta Platforms with a Buy and raised the price forecast from $775 to $900. Justin Post views Meta's second-quarter 2025 as a clear validation of its AI strategy, with revenue and EPS significantly beating expectations. Post expects Meta to increase capex by $30 billion in 2026 and grow expenses by over 25% to support its push toward superintelligent AI. While margins may tighten in 2026 if revenue growth slows, he believes AI investments are already generating meaningful returns and opening new monetization paths such as content creation tools, AI assistants, and devices. He raised his 2025 revenue and EPS estimates by 5% and 11%, respectively, and his 2026 projections by 9% and 12%. His new price objective reflects increased confidence in Meta's growth and leadership in AI. He noted Meta as one of the best-positioned companies to capitalize on the rise of agentic AI platforms, with upcoming catalysts like the Connect conference potentially adding further upside. Morgan Stanley: GenAI Is Accelerating Monetization Morgan Stanley analyst Brian Nowak maintained Meta Platforms with an Overweight rating and raised the price forecast from $750 to $850. Brian Nowak sees Meta's second-quarter 2025 results and third-quarter guidance as evidence that the company's GenAI- and GPU-driven improvements are accelerating both engagement and monetization faster than expected. He raised Meta's 2026 EPS forecast by ~9%. He lifted his price forecast, citing stronger ad revenue growth, expanding AI capabilities, and long-term upside potential in areas like superintelligence and core platform enhancements. Nowak highlighted that improved recommendation systems have driven steady, compounding increases in time spent on Facebook and Instagram, with Instagram video engagement growing over 20% year-over-year globally. These engagement gains are fueling impression growth and unlocking deeper monetization opportunities. On the ad side, he noted meaningful conversion lifts from Meta's AI-powered systems: GEM, Andromeda, and Lattice contributed to 3–5% increases in ad conversions across platforms. These improvements, which are compounding over time, underscore Meta's growing efficiency in monetization. While Meta's 2026 capex projection rises by 17% (to $105 billion), resulting in an 18% decline in projected free cash flow per share, Nowak believes the optionality from OBBBA (On-Behalf-Of Business Buying Ads) could more than offset this decline—potentially adding $4 per share in FCF versus the ~$3 per share cut from higher spending. He argues the long-term monetization runway, reinforced by faster revenue and EPS growth, justifies a higher valuation multiple. Cantor Fitzgerald: Core Strength Offsets Rising Spend Cantor Fitzgerald analyst Deepak Mathivanan maintained Meta Platforms with an Overweight rating and raised the price forecast from $828 to $920. Deepak Mathivanan sees Meta's second-quarter 2025 results as strong across the board, with revenue and EPS beating Street estimates by 6% and 21%, respectively. He attributes the 22% year-over-year ad revenue growth (ex-FX) to improving advertiser demand and product enhancements. Meta guided third-quarter revenue growth of 16–23% (ex-FX), signaling further acceleration at the high end. Despite raising its fiscal 2025 operating and capital expenditure guidance by $1 billion and $2 billion, and flagging another ~$30 billion increase in fiscal 2026 capex, Mathivanan remains optimistic. He believes Meta's core business generates enough cash flow to support its aggressive AI investments, positioning the company firmly in the race toward superintelligence. He raised his fiscal 2026 revenue and EPS estimates by 4% and increased his price forecast. He highlights key drivers: video engagement, ad revenue, WhatsApp, ad conversion rates, advertiser tools, and click-to-message ads. Wedbush: Momentum Continues to Build Wedbush analyst Scott Devitt maintained Meta Platforms with an Outperform and raised the price forecast from $750 to $920. Scott Devitt viewed Meta's second-quarter 2025 results as significantly stronger than expected. He noted that although investor sentiment was already high, the results and better-than-expected third-quarter guidance, calling for up to 24.4% revenue growth, pushed Meta shares up over 10% after hours. Devitt raised his 2025 revenue growth estimate to 18.9%, up from 13.5%, and expects more substantial operating income. He acknowledged Meta's growing expenses and capex, projecting $114 billion-$118 billion in 2025 expenses and ~$67B in capex, but believes the investment is justified by accelerating revenue growth and margin expansion. He credited Meta's AI investments for driving improved ad targeting and engagement. AI-powered tools increased time spent on Facebook and Instagram by 5% and 6%, respectively, and boosted ad conversions by 3–5%. Video engagement remained strong, with Instagram and Facebook video time up 20% year-over-year. Meta AI surpassed 1 billion monthly active users in the quarter. Devitt also highlighted strong regional ad revenue growth, 24% in Europe, 23% in Rest of World, 21% in North America, and 19% in APAC. Although Reality Labs posted a $4.5 billion loss, Meta's core business showed significant operating leverage. Devitt raised his third-quarter revenue forecast to $49.3 billion and expects 2025 operating income to rise 13%, with a projected margin of 41.5%. KeyBanc: AI Payoff is Becoming Clearer Keybanc analyst Justin Patterson maintained Meta Platforms with an Overweight rating and raised the price forecast from $800 to $905. Justin Patterson believes Meta's second-quarter 2025 results confirm that AI is meaningfully boosting engagement and ad performance, enabling the company to ramp up its AI-related capital investments confidently. Unlike in 2022, when concerns around overspending dominated, Patterson sees a more apparent connection between Meta's capex and AI strategy, backed by strong revenue growth and visible medium-term drivers like business messaging, Meta AI, and smart glasses. Patterson raised his 2025–2027 revenue estimates by 4%–8% and EPS forecasts by up to 14%, citing a stable macro environment and gains from the AI product cycle. He notes key AI wins: ad conversions improved by 5% on Instagram and 3% on Facebook, while time spent increased 6% and 5%, respectively. These gains also help justify elevated capex levels. While he expects operating margins to compress in 2026 and 2027 due to higher spending, he believes investors are comfortable with this tradeoff as long as profits and EPS continue to rise and AI-related progress remains visible. He also flagged Meta's new Superintelligence team as a long-term growth lever, though its impact will likely take more time to materialize. Price Action: META stock is trading higher by 11.6% to $775.91 at last check on Thursday. Image by Tada Images via Shutterstock Latest Ratings for META Date Firm Action From To Jul 2020 Desjardins Initiates Coverage On Buy View More Analyst Ratings for META View the Latest Analyst Ratings Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? This article Meta's Q2 Results Turn Skeptics Into Believers As Capex Narrative Shifts originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
