@BabyYodaCapital's thread on $CRTO is v interesting. This one really got me thinking. There is certainly an argument for RV here - meaning $CRTO has lot of upside on pure fundamentals alone Vs the likes of $MGNI and $TTD
But I believe there is a bigger picture here. Bear with me
But I believe there is a bigger picture here. Bear with me
https://twitter.com/BabyYodaCapital/status/1361033775560482817
First things first.
Let's face it. $CRTO's shift away from retargeting into the 'New Solutions' segment is driven by a need to survive due to the 3rd party cookie issue....
Let's face it. $CRTO's shift away from retargeting into the 'New Solutions' segment is driven by a need to survive due to the 3rd party cookie issue....
..but I agree that $CRTO's strong relationship with its retail clients has helped it gain access to a potential goldmine - i.e. client 1st party data esp. ecomm.
As a standalone entity, if management are able to execute on this transformation, $CRTO will do amazingly well.
As a standalone entity, if management are able to execute on this transformation, $CRTO will do amazingly well.
But I believe it could do even better as part of broader platform.
Is this 'New Solutions' segment sort of a DSP like $TTD as @BabyYodaCapital suggests? I was initially skeptical, but it got me thinking.
Is this 'New Solutions' segment sort of a DSP like $TTD as @BabyYodaCapital suggests? I was initially skeptical, but it got me thinking.
What really struck me though was this comment by @BabyYodaCapital
" $CRTO sees itself as the Amazon of ecommerce advertising "
Ballsy - I thought. But what if that were actually true.
" $CRTO sees itself as the Amazon of ecommerce advertising "
Ballsy - I thought. But what if that were actually true.
Let face it - $CRTO isn't $AMZN.
$AMZN has a much stronger B2C offering & a v wide reach which $CRTO lacks..but what it does have is access to data which could potentially compete with $AMZN - perhaps not at the same scale, but it's definitely a seat at the same table.
$AMZN has a much stronger B2C offering & a v wide reach which $CRTO lacks..but what it does have is access to data which could potentially compete with $AMZN - perhaps not at the same scale, but it's definitely a seat at the same table.
But what if $CRTO combined with a party that has a strong retail platform - to truly take on Amazon?
Which company has the wherewithal to envision such a future and invest in it?
Which company has the wherewithal to envision such a future and invest in it?
Enter $SHOP - the company with an excellent retail platform and a wide reach, but which does not currently have a proprietary adtech solution to monetize the data that it is sitting on. Could this be a deal in the making?
Perhaps M&A is a real possibility here - but if I were a $CRTO shareholder, I wouldn't sell this for below $50 at least; possibly more.
To state clearly - I'm just thinking out loud here. neither $SHOP nor $CRTO has stated this. But I feel it is possible.
To state clearly - I'm just thinking out loud here. neither $SHOP nor $CRTO has stated this. But I feel it is possible.
Whether M&A materialises or not, the fundamentals are certainly on $CRTO's side (standalone) as @BabyYodaCapital states.
I strongly believe there is a trade here, on fundamentals alone, but with an M&A kicker.
Long $CRTO Jul'21 $32.5 calls.
Thanks to @BabyYodaCapital
I strongly believe there is a trade here, on fundamentals alone, but with an M&A kicker.
Long $CRTO Jul'21 $32.5 calls.
Thanks to @BabyYodaCapital
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