RE:RE:Sell off overblown for Acuityprophetoffacts wrote: Torontojay wrote: The problem with many of these advertising giants is that they are priced for perfection. Any small changes in revenue growth rates could cause the share price to plummet as they are trading at lofty valuations. This is not the case for Acuityads which is growing at a 25% + clip on a revenue and ebitda basis.
Let's take a look at Snaps latest financials.
revenue growth = 57% over last years Q3
Adjusted ebitda growth = 209% !!!
Daily active users increased = 23%
--------
Much is priced in for AT and you are getting it at the earliest part of the growth curve which allows AT to outgrow problems over time. The insider selling stopped a while ago which is probably a good sign. The substantial cash position can also be put to use knowing existing indisutry issues and potentially taking advantage of any distressed opportunities, etc. That said, if society wants to opt-out of being monitored and this is just the beginning it is a risk still yet to play out fully. Apple has initiated things and we are still waitng to see the full implications of this. Others may follow. Lots of uncertanty concernnig the future may yield opportunity.
Earlier this year, Apple started requiring each app to get iPhone users’ permission to be tracked for advertising purposes. Device holders have opted to give apps the ability to monitor their behavior just 25 per cent of the time, according to an earlier estimate from Branch, which analyzes mobile app growth.
Snap executives have said its users were opting into tracking more often than some of the industry’s reported averages, but they won’t know the full effect of the change until later in the year. In prepared remarks, Snap Chief Executive Officer Evan Spiegel said these changes impacted Snap’s business in June and July.
“While we anticipated some degree of business disruption, the new Apple-provided measurement solution did not scale as we had expected, making it more difficult for our advertising partners to measure and manage their ad campaigns for iOS,” Spiegel plans to say on a call with analysts.
Snap tumbles as Apple's App Store rule changes weigh on ads - BNN Bloomberg
Great point @prophet. That is why I moved some of my early profit from AcuityAds over to Adcore but still own a nice amount of AcuityAds. Adcore is not as big as AcuityAds but they’re growing the adtech siide at a good pace, don’t use 3rd party cookies at all and thus not affected like AcuityAds could be, and they now have an edtech component too. I checked my anchor bias for AcuityAds a while back (still a believer but eyes more wide open now). The privacy issue and the use of 3rd party cookies is and will continue to be an issue - maybe more the fear of it than the reality. I am still anticipating a very nice Q3 report though on Nov 3rd for Acuity.