Gold bars to be exempt from tariffs, White House clarifies
Outbrain Inc. (OB), a leading recommendation platform for the open web, has seen its stock price touch a 52-week low, dipping to $2.58, representing a significant 67% decline from its 52-week high of $7.87. According to InvestingPro analysis, the stock appears undervalued at current levels, with strong free cash flow yield offering potential opportunity for value investors. This latest price level reflects a significant downturn from the company’s performance over the past year, with Outbrain’s stock experiencing a 1-year change of -41.61%. Despite current challenges, InvestingPro data reveals encouraging signs: analysts expect both sales and net income growth this year, with revenue reaching $959 million in the last twelve months. The decline to this new 52-week low underscores the challenges faced by the ad-tech industry, as companies navigate through a complex digital advertising landscape amidst increasing competition and evolving consumer behaviors. Investors are closely monitoring Outbrain’s strategies for recovery and growth as the company adapts to the shifting market dynamics. Get access to 13 more exclusive InvestingPro Tips and comprehensive analysis in the Pro Research Report.
In other recent news, Outbrain Inc. reported mixed financial results for the first quarter of 2025. The company posted an earnings per share (EPS) of -$0.20, which was below the forecasted -$0.14. Revenue also missed expectations, coming in at $286.4 million against a projected $298.95 million. Despite these shortfalls, Outbrain has expressed optimism about future growth, projecting a second-quarter Ex TAC Gross Profit between $141 million and $150 million and an Adjusted EBITDA of $26 million to $34 million. The company aims for $60 million in annualized cost synergies by 2026, with $40 million expected to be realized this year.
Citi analysts have maintained a Neutral rating on Outbrain’s stock, adjusting the price target slightly from $4.00 to $3.90. They noted that while the second quarter’s adjusted EBITDA guidance was below expectations, the company’s management had anticipated this due to the timing of cost synergies. The firm also highlighted Outbrain’s resilience in the face of macroeconomic conditions and its progress in integration efforts following a recent acquisition.
Outbrain’s strategic initiatives include the launch of its "Moments" vertical video solution, which has been adopted by over 70 publishers, and a strong performance in the connected TV (CTV) segment. The company is targeting a return to pro forma growth in the latter half of the year. Outbrain’s management reaffirmed their full-year 2025 outlook, emphasizing the importance of achieving cost synergies and adapting to a dynamic market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.