CHANGING DYNAMICSAfter listening to multiple conference calls in the industry, most notably SNAPCHAT's, it is evident that major apps and platforms are creating their own in-house end-to-end advertising managers and programs. Facebook has their ad manager, snapchat, bytedance and others will have their own. What does this mean?
Companies will make less use of back-end companies like Trade Desk and acuity. Although the market is still young, there are MANY DSP competitors in Acuity's environment. Although growth is still there in the near term, the overall size of the pie or TAM is decreasing as companies shift to this new paradigm.
I have owned Acuity since $1.30, then doubling down at $0.75. Unfortunately I sold half my position at what I thought was the top at $12.50, and then another quarter at $30. I have started rebuilding my position here at $11.50, but there are better valued companies: PERI has better EV/EBITDA and growth rate, ZOMD.VN is dirt cheap on an EV/Revenue basis.
I welcome any thoughts.