$PUBM ceilings and drop zones
Updated
From earnings to earnings, PUBM is dropping to new drop zones.
Charts show, between each drop zone, it sheds about 23-33% share price.
Even though their fundamental value come closer to 11.8$ / share, their Net Income is dropping massively.
On top of a headwind against overall Tech stocks, and Ad Tech industry, perhaps only reason why PUBM is still holding most of it's value is because of less debt.
Although, not sure how the stock is set to respond to first ever anticipated negative eps in 2023, which goes shoulder to shoulder with decade's high interest rates for the last quarter between 3.5% - 4.5%
Additionally, between their gross margins having dropped significantly, a decade high inflation, continued rise of interest rates - potentially up to 5.25%, we can expect next few quarters of negative growth.
This clearly calls for further downside of at least 50% (just by assuming 2 quarters of negative growth) - the book value from there isn't as far, which would still continue to drop.
Hence, setting 7.54$ as next 6 month's price target for PUBM!!!
Charts show, between each drop zone, it sheds about 23-33% share price.
Even though their fundamental value come closer to 11.8$ / share, their Net Income is dropping massively.
On top of a headwind against overall Tech stocks, and Ad Tech industry, perhaps only reason why PUBM is still holding most of it's value is because of less debt.
Although, not sure how the stock is set to respond to first ever anticipated negative eps in 2023, which goes shoulder to shoulder with decade's high interest rates for the last quarter between 3.5% - 4.5%
Additionally, between their gross margins having dropped significantly, a decade high inflation, continued rise of interest rates - potentially up to 5.25%, we can expect next few quarters of negative growth.
This clearly calls for further downside of at least 50% (just by assuming 2 quarters of negative growth) - the book value from there isn't as far, which would still continue to drop.
Hence, setting 7.54$ as next 6 month's price target for PUBM!!!
Note
I haven't closed my trade yet!Trade closed manually
Not as many companies in Ad Tech sector have such a good balance sheet, no debt, and such a number of profitable quarters. PUBM's return to profitable quarter and no debt could play strongly in their favour, unless there any potential headwinds against the ad-tech sector and potential client bankruptcies such as MediaMath.I think PUBM has the potential to survive, therefore I won't be recommending to short it anymore.
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