Shares of advertising-technology company Magnite (NASDAQ:MGNI) have gone up a lot in recent days. So far in November, the stock is up almost 50%. Part of that came on Thursday -- as of 12:30 p.m. EST, it was up 11%. It seems investors are still excited by a press release earlier this week that showed business is booming for Magnite.
Magnite's recent press release highlights how revenue in connected TV (CTV) was up 50% year over year in the third quarter. This was already known. But management went to great lengths to demonstrate just how well business is doing. For example, direct-to-consumer brands increased their CTV ad spending 159% in the third quarter. Consumer-packaged goods companies increased their spending by 86%. This growing adoption benefits Magnite.
Furthermore, the ad-tech world is adopting Magnite's technology. Magnite is a supply side platform (SSP) and it needs integration with demand-side platform (DSP) companies. To that end, management shared an encouraging statistic. Of the top 10 DSPs that work with Magnite, eight doubled their CTV spending last quarter.
Beyond the press release, Magnite management has spent the last couple days making presentations at investor conferences, sharing these details and more along with the company's long-term vision. Those presentations are likely contributing to the stock's gains in recent days as well.
Recent results are what this technology company expected to happen when it was created from the merger of Telaria and The Rubicon Project. To capture its opportunity, it needed scale. And now that it has scale as the largest independent SSP, it appears to be paying off.