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Subject:  Re: Magnite Making Its Move Date:  11/25/2020  1:27 PM
Author:  Bovinecheese Number:  73730 of 77949

Rockleppard, thanks for bringing this company to my attention. I did decide to open a small position last week and so far am pretty pleased with the performance of the stock. As I usually do with trial-sized positions, before deciding to make them a "real" position in my port, I'm attempting to learn more about Magnite specifically and the programmatic ad business generally. TTD has gradually moved up to the #2 spot in my port over the last 2 years, so I already know a little bit about how programmatic ads work. Mostly I know that whatever TTD is providing is in demand!

A question for you, since you seem to be the main Magnite prophet on this board: I have read Tom Gardner's opinion that growth potentially for a company focusing on the sell-side is substantially smaller (he suggested about one-tenth the size) than the potential size of a company on the buy-side, which is of course the sandbox Trade Desk plays in and seems to be taking over. Their respective market caps right now are approximately $2B for Magnite vs. $40B for Trade Desk.

Is this simply because the number of publishers and the space for the advertising they could potentially host is smaller than all of the businesses and brands who could potentially want to advertise? (That is, that long-term there will be more demand for ads than there is space to host them? That sort of makes intuitive sense to me. Or do you have a different opinion about the TAM in this space?

Again, thanks.

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