Earlier, Criteo expected revenue to fall by at least $60 million
The second quarter of 2020 was more successful for adtech companies than they had hoped. Shares of US medium-sized advertising companies are rising, according to Adweek.
In particular, the value of shares of Criteo — a company engaged in personalized retargeting, increased by almost 20%. This indicates a good response from investors, although Criteo has not yet published earnings forecasts for the second quarter, the article said.
In late April, Criteo warned investors that its second-quarter revenue would fall by at least $ 60 million. But after two months, these forecasts turned out to be too pessimistic.
“The overall revenue trends have been better than we expected,” Criteo said for investors.
Dan Salmon, managing director of equity research at BMO Capital Markets, said Criteo’s forecasts were so bleak because most of its customers are from the travel and retail industries. Namely, they suffered the most from the pandemic.
Adweek author Ronald Shields believes that rising Criteo stock prices have had a positive effect on other similar adtech companies. In particular, shares of Rubicon Project rose in price by 15%, and The Trade Desk’s by 11%.
According to Dan Salmon, this indicates that investors stop focusing only on giants, such as Google and Facebook. After all, stock prices of large market players are falling if you look at general trends, says the expert.