PubMatic (PUBM) stock is rising today on news that the adtech company has signed a new deal with X. Elon Musk’s social media company is taking steps to improve its advertising revenue as users continue to leave the platform. Now, it has signed up a new partner in an attempt to change course as the company struggles. PubMatic is a supply-side platform known for helping digital publishers generate ad revenue, which is exactly what X needs to do as it grapples with a diminishing user base.
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What’s Happening with PubMatic Stock?
Until today’s news broke, PubMatic hadn’t seen much growth. However, shares surged this afternoon after Business Insider reported that it would be joining forces with Musk’s company. As of this writing, shares finished up 5.52% for the day. While the past three months have been volatile, PUBM stock has performed well overall, with gains of 7.72% for the quarter.
Now PUBM stock has a chance to continue growing, as working with Musk will likely keep it in full focus. While X may be struggling to retain users, PubMatic could become one of 2025’s breakout companies if it can successfully help boost ad revenue for Musk. As Business Insider notes, “By opening up to the so-called open marketplace, X can theoretically tap into a bigger pool of potential advertisers.”
While some companies have opted against advertising with X since Musk assumed control of it, the CEO is clearly betting that PubMatic’s services can help it make up for these losses. How effective this new technique will be remains to be seen, but so far, the market is reacting well to the news of PubMatic’s new partnership.
Wall Street Is Fairly Bullish on PubMatic Stock
Turning to Wall Street, analysts have a Strong Buy consensus rating on PUBM stock based on four Buys and two Holds assigned in the past three months, as indicated by the graphic below. Although shares have fallen 5% over the past year, the average PUBM price target of $21.75 per share implies 40% upside potential.
See more PUBM stock analyst ratings
While no analysts have upgraded their takes on PubMatic following news of the X partnership, it is likely that they will do so in the near future as the market adjusts to this development.
