Ad-tech cos fall after Keybanc says sector has entered 'modest' recession

Taboola.Com

01/08/2022 11:50

** Keybanc Capital Markets says ad-tech industry has
"entered into a modest ad recession"
    ** Shares of ad-tech firms Trade Desk  TTD.O , PubMatic
 PUBM.O , Digital Turbine  APPS.O  and Taboola.com  TBLA.O  down
between 0.2% and 2.8% premarket
    ** Keybanc cuts its rating for TBLA and PUBM to "sector
weight" from "overweight" and lowered PT on TDD to $52 from $55
ahead of ad-tech earnings
    ** Says tighter budgets, inflation, less time spent online
and forex headwinds are increasing the pressure faced by these
companies 
    ** PUBM and TBLA are more likely to be hit by these
pressures due to higher exposure to European markets - Keybanc
    ** TTD is best positioned among ad-tech cos as it has more
exposure to connecetd television and the U.S. - Keybanc
    ** Separately, digital ad-dependent co Meta Platforms
 META.O  CEO Mark Zuckerberg told staffers META planned for
growth too optimistically, mistakenly expecting that a bump in
usage and revenue growth during COVID-19 lockdowns would be
sustained  urn:newsml:reuters.com:*:nL1N2ZA2ZW
    ** Zuckerberg had said last week over an investor call that
he believed the economy was entering a downturn that would have
a "broad impact" on the digital advertising business

 (Reporting by Chavi Mehta in Bengaluru)
 ((Chavi.Mehta@thomsonreuters.com;))