From Nasdaq: 2025-05-27 13:16:00

In a podcast, Motley Fool analysts discuss Nike’s return to Amazon, the risks and fundamentals of investing in turnaround stories, and a fitness company with potential. PubMatic CEO Rajeev Goel is interviewed about digital advertising trends. Learn about the 10 best stocks to invest in right now and potential lucrative “Double Down” stock recommendations.

Nike has reversed course on direct sales, returning to Amazon after five years. The move comes as Nike CEO Elliott Hill aims to appeal to more retailers. The company is planning to hike prices on June 1, amidst a challenging environment for turnaround. Retailers are expected to follow suit due to increased costs.

Investors are urged to consider the long-term nature of turnaround stories, as Nike has lost nearly two-thirds of its value in the last four years. Price hikes and potential tariffs may impact consumer costs. Walmart’s recent price increase signals a trend of rising prices across retailers. Nike’s decision to raise prices may be influenced by various factors, including increased costs related to Amazon fulfillment. Nike faces challenges in a higher cost environment. Rebranding from a discount to full-price brand is tough. The Win Now plan focuses on retail and technology. Turnarounds are risky. Other companies like United Health Group and Boeing faced struggles before recovering. Chipotle’s successful turnaround took years. Nike’s future growth remains uncertain. Chipotle experienced a renaissance, but early investors may have paid more than necessary. Elliott Hill became CEO of Nike in 2024, and the company’s future remains uncertain. Jim Gillies discusses Peloton’s turnaround, highlighting improved guidance and free cash flow generation. Peloton is now trading at 13 times free cash flow and focused on subscription services over hardware sales. Gillies predicts Peloton could be a multi-bagger investment in the future. In an interview with The Motley Fool, CEO of PubMatic Rajeev Goel discusses the shift to streaming in advertising and the company’s new initiatives like Activate, Convert, and Connect. With more households opting for streaming services, the advertising market is evolving towards programmatic spend and performance marketing. This shift presents a significant opportunity for PubMatic to capitalize on. PubMatic is positioning itself as a leader in performance channels like CTV and commerce media with advanced data and targeting capabilities. The company is focused on supply path optimization and AI-driven solutions to drive more efficient ad spend. Despite some recent challenges, they aim to sustain over 15% revenue growth annually, outpacing the market.

Looking ahead, PubMatic expects to continue growing at a 15%+ rate, with potential for even higher growth in certain quarters. This growth signifies sustained market share expansion in the digital advertising landscape. With a market growing at 8-10%, PubMatic’s focus on innovation and efficiency sets them up for continued success.

For more insights and details on PubMatic’s financial projections, including their revenue growth and market share ambitions, check out the full interview linked in the show notes. As always, remember to consider the personal interests and recommendations of the individuals on the program and to conduct your own research before making any investment decisions. Thank you for listening, and stay tuned for more updates. The Motley Fool suggests investing in Campbell’s, Instacart, and UnitedHealth Group. They also recommend shorting June 2025 $55 calls on Chipotle Mexican Grill. For more information, check out their disclosure policy. The opinions shared in the article are those of the author and not Nasdaq, Inc.



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