B. Riley analyst Zach Cummins tells investors in a research note that the weakness in Magnite (MGNI) shares during the Tuesday trading session was overdone and provides an incremental buying opportunity. Shares declined due to podcast commentary from Disney’s (DIS) SVP, Addressable Sales, Jamie Power, who stated that Disney “directly connected with both Google (GOOGL) and The Trade Desk (TTD) and removed Magnite from the tech stack” as part of an expansion of the Disney Real-Time Ad Exchange, but B. Riley also notes that Power stated that Magnite is “still critical to their success,” as Magnite helps aggregate and effectively serve demand from Disney’s 32 demand side partners, and therefore views the headline risk as overblown. The firm made no change to its Buy rating or $18.50 price target.
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