Innovid Up 70% in the Past 6 Months: Should Investors Buy the Stock?

Innovid CTV shares have rallied 70.2% over the past six months, outperforming the Zacks Computer & Technology sector’s appreciation of 7.4% and the Zacks Internet - Software industry’s return of 14.4%.Innovid has outperformed its competitor, Alphabet GOOGL, which provides ad-serving and creative personalization solutions. Alphabet shares have gained 5.8% over the past six months.The outperformance can be attributed to the growing adoption of connected TV advertising, expanded software-only offerings, and partnerships with major platforms like Netflix NFLX and LG Ad Solutions. In the third quarter of 2024, Innovid experienced strong growth in its connected TV ad serving and personalization revenues, which grew 12% year over year. Innovid Corp. Price and Consensus Innovid Corp. price-consensus-chart | Innovid Corp. QuoteInnovid video impressions also reached a new record high of 58% of total video impressions, reflecting the increasing shift of client budgets from linear TV to connected TV.Innovid’s Growth Fueled by Key PartnershipsInnovid expanded its partnerships with key players such as Netflix, Alltold, Nielsen, IRIS.TV and Disney DIS in the advertising ecosystem have been major growth drivers for its success.In the third quarter of 2024, the company expanded its partnership with Netflix as one of the two partners for impression verification in Netflix’s ad-supported tier. This partnership enhanced Innovid’s visibility and opened up more opportunities to serve ads on a major ad-supported platform as Netflix continues to scale its ad business.CTV’s partnership with Disney enhances real-time creative optimization and measurement across Disney’s streaming platforms, enabling advertisers to adjust campaigns based on immediate consumer insights.The company recently announced its partnership with IRIS.TV on Dec. 18, 2024, to integrate its content data marketplace and contextual relevance indexing into Innovid’s measurement platform. This will empower advertisers with actionable insights to optimize campaigns while prioritizing privacy.The launch and expansion of Innovid’s Harmony initiative in the third quarter of 2024, aimed to optimize CTV advertising infrastructure, further solidified the company’s position in the advertising landscape.CTV Initiates Strong FY24 GuidanceInnovid’s strong growth in connected TV and an expanding clientele is expected to benefit the company’s financial performance.For the fourth quarter of 2024, Innovid expects revenues between $37.5 million and $39.5 million. For the fourth quarter, the Zacks Consensus Estimate for revenues is pegged at $39.02 million, indicating a year-over-year increase of 1.04%.For the fourth quarter, the Zacks Consensus Estimate for earnings is pegged at 1 cent per share, which has remained unchanged in the past 30 days.For full year 2024, the company expects revenues in the range of $150.5 million-$152.5 million, representing 8% year-over-year growth at the midpoint.The Zacks Consensus Estimate for full year 2024 revenues is pegged at $151.96 million, indicating a year-over-year increase of 8.63%.For full year 2024, the consensus mark for loss is pegged at 7 cents per share, which remained unchanged in the past 30 days.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.What Should Investors Do With CTV Stock?Innovid’s focus on solidifying its leadership in connected TV, particularly through its Harmony initiative, AI-powered capabilities, and ongoing collaborations with major streaming platforms, is expected to have been a tailwind for CTV.The company is also dedicated to enhancing client retention and increasing operational efficiencies within its advertising platform, making the stock attractive to investors.CTV currently sports a Zacks Rank #1 (Strong Buy) and has a Growth Score of A, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. You can see the complete list of today’s Zacks #1 Rank stocks here.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Netflix, Inc. (NFLX): Free Stock Analysis Report The Walt Disney Company (DIS): Free Stock Analysis Report Innovid Corp. (CTV): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks