March 30, 2022

On Pubmatic

 

The first stock that I believe offers incredible upside potential is cloud-based advertising technology company PubMatic ( PUBM -1.83% ). PubMatic is a new addition to my portfolio, with three separate purchases between March 7 and March 14. With a cost basis of $19.72, I'm effectively expecting this to become a $200 a share stock at some point in the future.

The key growth catalyst is the steady shift of advertising dollars from print to digital formats. PubMatic is a sell-side provider within the programmatic ad space. In English, this just means it sells display space for publishers. Interestingly, though, PubMatic doesn't always fill display space with the highest-priced ad. Rather, the company's machine-learning algorithms look to place the most relevant content in front of users. This way advertisers stay happy and publishers are afforded more pricing power over time.

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