Old headline presents ‘new opportunity’ to buy Magnite shares, says Benchmark

Benchmark analyst Daniel Kurnos notes that shares of Magnite (MGNI) are down over 15% intraday, which the firm attributes to a Digiday podcast having reiterated a story that “first spawned back in March” regarding Disney’s (DIS) DRAX platform and standing up direct integrations with Trade Desk (TTD) and DV360. However, answering the question of whether Disney is going to create a full end-to-end ad stack without Magnite, the firm says this is “highly unlikely,” adding that it suspects Magnite may utilize their leverage as “a key cog to Disney’s ad stack in whatever round of negotiations take place next.” For the stock to lose one-sixth of its equity value “over what is really old news” feels “incredibly extreme,” says the analyst, who has a Buy rating and $21 price target on Magnite shares.