On May 23, 2018, we published revised versions of our Privacy Policy and User Agreements. Please read these updated terms and take some time to understand them. Your use of our services is subject to these revised terms.
Yes, I Agree.

AppNexus IPO may signal bright outlook for the Ad Tech space

With the Wall Street Journal (http://nnw.fm/9SxEJ) reporting that AppNexus filed its IPO paperwork, in a deal that is likely to be underwritten by Goldman Sachs (NYSE: GS) and JP Morgan Chase (NYSE: JPM), it’s time to review the ad tech landscape.  After all, the deal is projected to be twice as large as the most recent ad tech IPO, The Trade Desk (NASDAQ: TTD), which commanded a premium of nearly 80% above its IPO price target and a $1 billion opening trading day valuation.

Despite the sagging economy, internet and mobile advertising has been growing by approximately 20% per year.  Yet, despite the growth rate, the past two years have been tough for the industry and venture funding for ad tech startups became harder to secure, so any positive momentum is very welcome and may even explain the analysts’ enthusiasm for the players in the ad tech space, like The Trade Desk, which is rated a buy, or stronger, with an average price target of $33.43 and a call as high as $40.00, while Social Reality (NASDAQ: SRAX), which uplisted to the NASDAQ Capital Market in October 2016, has its analysts calling it a buy, on an EPS of 27 cents in 2017, with an average price target of $10.75 and the high target of $14.00.

With public sentiment experiencing one of the largest upswings in history, on the heels of the Trump victory, many businesses can begin to take an expansionary stance toward the future, and marketing should be one of the big beneficiaries should that trend come to fruition.

The ad tech industry, at one point, was somewhat of an afterthought, but once it became a crucial piece of the monetization model for the web and mobile, the large marketing tech and vendor sites are constantly looking for the next ad tech acquisition.  Ad tech not only empowers the buying and selling of digital ad space on ad networks and exchanges, but it also includes analytics, data management platforms and other digital tools, which allow organizations to more effectively employ marketing campaigns that target specific audiences.

Social Reality is a leading provider of automated digital platform technology and social management software, for Internet and mobile advertising.  Management has consistently grown revenues, from about $500,000, in 2010, to over $30 million, in 2015, an average annual growth rate (AAGR) of 170%, while typically running blended gross margins in the 45-55% range.

The Trade Desk is similar to Social Reality, in that its technology is designed to empower ad buyers by providing a self-service platform that enables their clients to manage data-driven digital advertising campaigns.

The same economic dynamics that should benefit the ad tech sector go a long way in explaining why the financials have become the S&P 500’s best-performing sector since the election.  Underwriters, like Goldman Sachs and JP Morgan Chase, should see a noticeable increase in IPOs and merger and acquisition activity.

2016 is tracking to finish with 121 completed IPOs, which is just ahead of 2008 and 2009, but only 1/3-1/2 of the typical recent years’ volume.

J.P. Morgan and Goldman Sachs are leading an underwriting group for the trivago NV, the travel web search booking website, IPO set for the 15th of December.

For more information, please visit www.socialreality.com www.srax.com www.sraxmd.com www.sraxdi.com www.groupad.com www.steelmediainc.com www.sraxsocial.com

About Stock Communications Group (SCG)

Stock Communications Group specializes in providing superior capital market communications. Our team of experienced tactical specialists can benefit public and private companies with proven financial strategies and solutions.  Our investor relations and public relations services ensure that your company effectively communicates with investors, shareholders, regulators, and the financial community; to ensure that your company’s message properly promotes your company’s image, protects your brand, and maximizes your valuation.

SCG specializes in creating objective, credible, and timely communications that’s convenient and easy to understand. From conference call and annual meeting webcasts to creating special investor relations websites, we do it all. We even handle direct response duties to inquiries from individual investors, corporate profiles and other supporting publications, news releases and subscriber services.  Our success stories span all industry sectors and are at the ready to deploy our unique resources to make your efforts truly successful.

Stockcomm has been paid by Market Street Communications for the distribution of this release and will not be trading in the stock at any time.

For more information, please visit www.stockcomm.com

Stock Communications Group
Boynton Beach, FL 33426
info@stockcomm.com

About NetworkNewsWire

NetworkNewsWire (NNW) provides news aggregation and syndication, enhanced press release services and a full array of social communication solutions. As a multifaceted financial news and distribution company with an extensive team of journalists and writers, NNW is uniquely positioned to best serve private and public companies who need to reach a wide audience of investors, consumers, journalists and the general public. NNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, NNW brings its clients unparalleled visibility, recognition and brand awareness. NNW is where news, content and information converge.

For more information, visit https://www.NetworkNewsWire.com

Please see full disclaimers on the NetworkNewsWire website: http://nnw.fm/Disclaimer

NetworkNewsWire (NNW)
New York, New York
www.NetworkNewsWire.com
212.418.1217 Office
Editor@NetworkNewsWire.net

Archives

Select A Month

NetworkNewsWire Currently Accepts

Bitcoin

Bitcoin

Bitcoin Cash

Bitcoin Cash

Doge Coin

Dogecoin

Ethereum

Ethereum

Litecoin

Litecoin

USD Coin

USD Coin

Contact us: 212.418.1217