This Digital Ad Software Tech Stock Is Beating the Nasdaq Index -- Is It a Buy?
The digital advertising industry has been in turmoil this year. The angst started when Apple -- in a move to improve user privacy -- made big changes to app tracking transparency. Next, the Federal Reserve began hiking interest rates in its efforts to fight against inflation. But that has also increased the odds the U.S. will slip into a recession, and recessions generally feature lower advertising activity.
But one digital ad software business has been doing quite well: DoubleVerify Holdings (NYSE: DV). It hasn't been totally immune to the bear market of 2022. Its shares are down 19% so far this year, but that's still significantly better than the 27% plunge of the Nasdaq Composite index. More importantly, the business itself is booming.
Many investors have become familiar with digital ad companies that operate ad marketplaces like Alphabet's Google and The Trade Desk. Names like Magnite and PubMatic, which help publishers list ad space for sale, have also become popular with investors. But DoubleVerify is something different: It's a software company that helps these ad marketplaces and publishers measure the effectiveness of their ad campaigns.
Source Fool.com
