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Meta Platforms Inc. (META)
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Alphabet Inc. (GOOG)
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The Trade Desk Inc. (TTD)
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illumin Holdings Inc. (ILLM)
Can you give your present assessment of ILLM.CA? Would you continue to hold or sell or what replacement would you recommend?
kc
ILLM recently bought back shares through a tender offer of around $40M, or around 30% of the market cap, and it intends to delist from Nasdaq to save costs. Revenue recovered recently, growing by 17%, but adjusted EBITDA dropped quite significantly to near $0, compared to $1.5M last year. The company could experience a recovery as the ad tech market stabilizes and bottoms. But there is economic sensitivity here. ILLM also operates in an industry with intense competition from large players such as META, and GOOG. With its small size and losses it could see tax-loss selling in the 4Q, and it has been a disappointment to many, including us. We would be a HOLD for now, but TTD looks better for a direct ad play.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in META, GOOG, TTD.