Sensex, Nifty Marginally Lower In Early Trade


What happened

Shares of Taboola (NASDAQ: TBLA) soared 56% this past week, according to data from S&P Global Market Intelligence, after the advertising company struck a blockbuster deal with Yahoo!.

So what

Under the terms of the agreement, Taboola will serve as Yahoo!’s exclusive digital advertising partner across its websites. Taboola will run the native ads on Yahoo!’s properties spanning news, sports, finance, and more that collectively reach nearly 900 million monthly active users.

As part of the deal, Yahoo! will also receive a roughly 25% equity stake in Taboola and a seat on the ad company’s board of directors.

“Yahoo! is an internet pioneer, representing one of the largest, most trusted, and most sophisticated publishers in the world,” Taboola CEO Adam Singolda said in a press release. “Everywhere I look, I see a rocket ship growth opportunity for both of us — native, e-commerce, video, header bidding (display), and more.”

The transaction is projected to close in the first quarter of 2023, subject to shareholder and regulatory approval. Taboola expects the partnership to be “highly accretive” to its revenue and free cash flow post-closing.

Now what

The agreement would cement Taboola’s position as a leading native advertising platform at a time when advertisers and publishers are searching for new ways to monetize their sites. The impact of Apple‘s privacy changes on Facebook’s and other social media sites’ ad-targeting abilities, along with Google’s plans to reduce its reliance on cookies to power its data-collection efforts, are forcing marketers to seek out effective alternatives. Taboola is emerging as one such option. Investors, in turn, are bidding up its stock price to reflect its improved prospects in the digital ad arena.

10 stocks we like better than
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

They just revealed what they believe are the ten best stocks for investors to buy right now… and wasn’t one of them! That’s right — they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of December 1, 2022

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, and Meta Platforms. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


Image and article originally from Read the original article here.