Taboola stock hits 52-week low at $2.69 amid market challenges

In a challenging market environment, Taboola.com Ltd. (TBLA) stock has touched a 52-week low, with shares falling to $2.69. According to InvestingPro analysis, the company maintains strong financial health with a GOOD overall rating, and management has been actively buying back shares. The content discovery platform, which went public through a merger with a special purpose acquisition company, has faced headwinds that have seen its stock price significantly retreat from previous levels. Over the past year, the company’s shares have experienced a substantial decline, with the 1-year change data reflecting a decrease of 39.2%. Despite current market pressures, InvestingPro’s Fair Value analysis suggests the stock is currently undervalued, with analysts projecting positive net income growth for the coming year. This downturn mirrors broader market trends and investor sentiment, as the company navigates through the evolving digital advertising landscape. The company maintains a healthy balance sheet with more cash than debt and strong liquidity ratios. Discover 11 more exclusive insights about TBLA with an InvestingPro subscription.

In other recent news, Taboola has projected that its first-quarter 2025 financial results will likely reach the upper end of its guidance, with expectations for strong performance in revenues and Adjusted EBITDA. This announcement aligns with Benchmark’s updated forecast, which has increased its first-quarter revenue projection to $418 million and Adjusted EBITDA to $24 million. In a strategic financial move, Taboola has secured a $270 million revolving credit facility, retiring its existing term loan and potentially saving $3 to $5 million annually in interest. This refinancing effort, facilitated by Bank of America and other financial institutions, aims to lower Taboola’s cost of capital and extend debt maturities to 2030.

Benchmark has maintained its Buy rating for Taboola but has adjusted its price target to $4.50, citing a deceleration in growth for the company’s native advertising business. Meanwhile, JMP Securities has kept a Market Perform rating, noting the early-stage development of Taboola’s Realize platform, which aims to expand its performance advertising offerings. Taboola’s management remains optimistic about leveraging its Realize platform to tap into new advertising budgets, despite existing constraints and uncertainties in the market. The company continues to engage with premium publishers and OEMs, aiming to enhance its advertising reach and capitalize on its innovative advertising solutions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.