A clarification on how Google will approach targeted ads starting next year, which came amid a market sell-off, has caused a lot of pain for ad tech stocks in recent days. But some analysts see this as the perfect opportunity to get in on the sector.
Ad tech has recently seen a resurgence, with a slew of new entrants like sell-side advertising player PubMatic, demand-side ad tech company Viant and digital ad platform Kubient. Meanwhile, more mature public ad tech companies like The Trade Desk and Magnite have seen stock prices and market caps soar in recent months.
But The Trade Desk and its peers saw stocks tumble late last week after Google's latest guidance Wednesday on its promise not to use technologies that track people individually across the internet. Stocks in the sector were also in the red amid a broader sell-off that was hurting high-flying tech stocks.
Nevertheless, some analysts see this as the opportunity to buy some certain ad tech stocks, which they say are well-positioned to perform well in the long term despite some short-term volatility.