PubMatic ( PUBM Quick Quote PUBM - Free Report) recently announced a strategic partnership with PhonePe that enables its programmatic buying partners to leverage PhonePe’s premium mobile app inventory and audiences. This partnership enables PhonePe's premium mobile app inventory and diverse audience to integrate seamlessly with PubMatic's programmatic buying ecosystem. With PhonePe's substantial user base of more than 500 million and a dominant 47% market share in India’s Unified Payments Interface (UPI), this collaboration provides significant opportunities for Indian media buyers to engage PhonePe's Indic-language-speaking audiences across various locations. Leveraging PubMatic’s programmatic technology, PhonePe aims to offer advertisers a privacy-compliant, fraud-free advertising supply chain while enhancing the user experience for viewers on its platform. This strategic alliance underscores PhonePe's commitment to digital innovation and advancing India's transition to a cashless economy. Expanding Portfolio Aids PubMatic’s Prospects
PubMatic benefits from a robust portfolio, leveraging advanced programmatic technology and an omnichannel platform to deepen customer and partner relationships. PUBM is expanding its presence in the evolving digital landscape, including the inventory and digital payment sectors.
The upside is also evident from PubMatic's expanding clientele, exemplified by its recent partnerships with Experian ( EXPGY Quick Quote EXPGY - Free Report) and Comcast ( CMCSA Quick Quote CMCSA - Free Report) . Experian's collaboration with PubMatic introduces distinctive capabilities for targeting commerce media at the household level. The collaboration utilizes syndicated audiences and privacy-centric insights, thereby reshaping data-driven advertisement and digital transformation in commerce media. Its collaboration with Comcast Division Freewheel allows PubMatic’s Activate direct access to high-quality publisher CTV ad inventory on the Freewheel platform. Expanding its horizons, PubMatic expands into the Asia-Pacific with the launch of Activate, collaborating with partners like Dentsu APAC, iQIYI, Kinesso India, Madison Digital and Wishmedia to transform traditional transactions into programmatic deals for CTV/OTT and online video. PubMatic also expanded its portfolio by empowering publishers and buyers with alternative signals and facilitating daily transactions of billions of ad impressions, with nearly 75% beyond cookies. In the third quarter of 2023, PubMatic achieved 11% growth in active publishers on its platform, successfully monetizing inventory from over 1,750 global publishers and app developers. For the fourth quarter of 2023, PUBM expects revenues between $76 million and $80 million. The Zacks Consensus Estimate for the current quarter is pegged at $78.15 million, indicating an increase of 5.18% year over year. Zacks Rank & Stocks to Consider
Currently, PUBM has Zacks Rank #2 (Buy).
PUBM’s shares have returned 26.2% against the Zacks Computer & Technology sector’s return of 46.1%. A better-ranked stock in the broader technology sector is NVIDIA ( NVDA Quick Quote NVDA - Free Report) , which sports a Zacks Rank #1 (Strong Buy). You can see . the complete list of today’s Zacks #1 Rank stocks here NVDA’s shares have returned 233.4% on a year-to-date basis. Long-term earnings growth rates for NVIDIA are pegged at 13.5%.