Barron's coverage of CRTO

Investment Analysis Clubs Saul’s Investing Discussions
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Hi all,

Barron’s initiated coverage of CRTO with a hold rating. The following bit is probably one of their core concerns:

We see Facebook’s ( FB ) newly introduced Dynamic Product Ads and Google’s ( GOOGL ) Product Listing Ads as emerging competitive threats to Criteo. While Criteo can buy these new ad formats, Facebook and Google are also encouraging retailers to upload their data directly, replicating Criteo’s business in many ways.

We also see Criteo’s comparatively high 40% fee as ultimately handicapping the ability to win bids for ad space relative to advertisers that use either a self-serve platform with a significantly lower take-rate (closer to the teens or even mid-single digits) or those that integrate directly with Facebook/Google.

http://online.barrons.com/articles/can-criteo-hold-off-faceb…

Anirban

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We see Facebook’s newly introduced Dynamic Product Ads and Google’s Product Listing Ads as emerging competitive threats to Criteo. While Criteo can buy these new ad formats, Facebook and Google are also encouraging retailers to upload their data directly, replicating Criteo’s business in many ways.

We also see Criteo’s comparatively high 40% fee as ultimately handicapping the ability to win bids for ad space relative to advertisers that use either a self-serve platform with a significantly lower take-rate (closer to the teens or even mid-single digits) or those that integrate directly with Facebook/Google.

Anirban, What’s your take on this threat?

Saul