(1) Fundamentals:
Pubmatic Inc. (PUBM) provides a cloud infrastructure platform that enables real-time programmatic advertising for internet content creators and advertisers worldwide. It operates as SSP (Supply-Side Platform). One of its main competitors is Magnite, which right now is probably the biggest SSP Player in this space (TTD works as DSP).
Nevertheless PUBM has a fundamentally stronger stance than Magnite, because it already generates real profits on the bottom line and at the same time has been constantly overdelivering (and raising guidance) in regards of Revenue Growth (over 30% YoY) with Gross Profit Margins of over 73%. Being valued at a forward EV/Sales of 8 this stock is really a bargain with an incredible valuation potential considering that this space has a huge TAM that is growing at a yearly 10 - 20% pace.
Biggest risk (and chance at the same time) is its high short interest rate of around 30% (nobody really knows if this figure is correct and if so, why it is so high).
(2)Technicals:
Looking at the daily Chart we see two clear signals. First an increase in Volume (this is important) and at the same time a nice CUP & HANDLE formation, which is a very bullish pattern. After surpassing the next strong resistance of $38,02 (red line representing the 50 day EMA) PUBM should be going after it's remaining resistances at $45, 56 & $62 and then quickly head to it's intraday ATH of $76,96. I think that it is perfectly possibly, if management continues delivering great quarterly results, that PUBM could become another Multibagger reaching the $100 handle within the next 12 months. In other words, investors and Medium Term Traders that are looking for great returns should be considering the actual level of $34-35 as entry point for a first investment into PUBMATIC.
Those who are willing to take this risk won't regret it and if you liked this analysis please give the like button a hit and eventually leave a comment.
Pubmatic Inc. (PUBM) provides a cloud infrastructure platform that enables real-time programmatic advertising for internet content creators and advertisers worldwide. It operates as SSP (Supply-Side Platform). One of its main competitors is Magnite, which right now is probably the biggest SSP Player in this space (TTD works as DSP).
Nevertheless PUBM has a fundamentally stronger stance than Magnite, because it already generates real profits on the bottom line and at the same time has been constantly overdelivering (and raising guidance) in regards of Revenue Growth (over 30% YoY) with Gross Profit Margins of over 73%. Being valued at a forward EV/Sales of 8 this stock is really a bargain with an incredible valuation potential considering that this space has a huge TAM that is growing at a yearly 10 - 20% pace.
Biggest risk (and chance at the same time) is its high short interest rate of around 30% (nobody really knows if this figure is correct and if so, why it is so high).
(2)Technicals:
Looking at the daily Chart we see two clear signals. First an increase in Volume (this is important) and at the same time a nice CUP & HANDLE formation, which is a very bullish pattern. After surpassing the next strong resistance of $38,02 (red line representing the 50 day EMA) PUBM should be going after it's remaining resistances at $45, 56 & $62 and then quickly head to it's intraday ATH of $76,96. I think that it is perfectly possibly, if management continues delivering great quarterly results, that PUBM could become another Multibagger reaching the $100 handle within the next 12 months. In other words, investors and Medium Term Traders that are looking for great returns should be considering the actual level of $34-35 as entry point for a first investment into PUBMATIC.
Those who are willing to take this risk won't regret it and if you liked this analysis please give the like button a hit and eventually leave a comment.