What Happened?
Shares of digital ad verification company DoubleVerify (NYSE: DV) jumped 12.5% in the afternoon session after analyst commentary suggested the company's stock was undervalued following a recent plunge, with firms maintaining their 'Buy' ratings despite lowering price targets.
The stock's move followed a sharp decline after its third-quarter results were released. Despite the company reporting 11% revenue growth, the stock had previously fallen. However, analysts at Truist Securities and Needham reiterated their confidence. While both firms lowered their price targets, they maintained 'Buy' ratings. Truist noted softness in the retail vertical but stated that the stock's valuation had reached "unwarranted" low levels. This signal suggested the prior drop was an overreaction, prompting investors to see a buying opportunity.
Is now the time to buy DoubleVerify? Access our full analysis report here.
What Is The Market Telling Us
DoubleVerify’s shares are somewhat volatile and have had 13 moves greater than 5% over the last year. But moves this big are rare even for DoubleVerify and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 3 days ago when the stock dropped 18.6% on the news that the company reported third-quarter financial results that missed revenue expectations and provided a weak forecast for the fourth quarter. For the third quarter, the digital media measurement firm posted revenue of $188.6 million. While this was an 11.2% increase from the same period last year, it fell short of analyst forecasts of $190.2 million. Profitability also disappointed, with adjusted earnings per share of $0.22 missing Wall Street's expectations of $0.27. Looking ahead, DoubleVerify's guidance for the fourth quarter also underwhelmed investors. The company projected revenue between $207 million and $211 million, with the midpoint of this range falling below the consensus estimate of $210.8 million, suggesting concerns about future growth.
DoubleVerify is down 45.6% since the beginning of the year, and at $10.47 per share, it is trading 54.6% below its 52-week high of $23.07 from February 2025. Investors who bought $1,000 worth of DoubleVerify’s shares at the IPO in April 2021 would now be looking at an investment worth $290.79.
The biggest winners—Microsoft, Alphabet, Coca-Cola, Monster Beverage—were all riding powerful megatrends before Wall Street caught on. We’ve just identified an under-the-radar profitable growth stock positioned at the center of the AI boom. Get it FREE here before the crowd discovers it. GO HERE NOW.
