Taboola.com secures exclusive partnership with Apple for ad reselling, leading to stock rally

From Nasdaq: 2024-07-25 09:06:32

Taboola.com Ltd. (TBLA) has made headlines with its exclusive partnership with Apple (AAPL) for ad reselling on Apple News and Stocks apps, leading to stock price rally and analyst endorsement. Taboola, valued at $991 million, offers AI-powered advertising solutions. Recent deals with Mediahuis Ireland, Foundry and a360media boost growth prospects and revenue potential.

Taboola.com announced a strategic partnership with Apple, securing exclusive rights to resell ads on Apple News and Stocks apps. The deal has significantly increased Taboola’s market presence and revenue potential. Through recent partnerships with Mediahuis Ireland, Foundry, and a360media, Taboola continues to expand its reach and enhance user engagement across various digital platforms.

Taboola.com reported a revenue increase of 26.3% year-over-year in Q1, driven by new partnerships. The AI-bidding technology suite, Maximize Conversions, contributed significantly to revenue growth. Adjusted EBITDA saw a 132% year-over-year increase to $23.5 million, with strong free cash flow of $27 million. Taboola’s outlook for 2024 remains positive with revenue expected to grow by 33% year-over-year.

Analysts predict a bright future for Taboola.com, rating the stock as a “Strong Buy.” With a forward sales multiple of 0.60, Taboola appears undervalued compared to competitors. Options market sentiment points to a potential 22% price movement by August, indicating a trading range of $2.56 to $4.00. Bulish sentiment is evident in the higher number of call options, particularly at the $5.00 strike price.



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