I see nothing about this on my scorecard’s “news” section. But, looking at the chart, such price action is not uncommon.
No news. It has been sliding the last week or so.
A.J.
Found this, which may help explain it: http://www.investors.com/news/technology/ad-firm-criteo-stoc…
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see the SAS Criteo board if you are a member.
In short Apple has new software to block Criteo in computer Safari. But that is only 1.5% of Critero revenue . Maybe it will turn out to be a battle of probers vs blockers, who knows.
At this price CRTO price has over reacted, I may buy more. AKAIK it will not impact CRTO bottom line. Any high priced stock gets hit by this kind of “event that really isn’t an event” selling. I follow TSLA closely and it is a great example. Nearly killed by battery fires even though Teslas catch fire less often than other cars.
Companies like Criteo serve a useful function for advertisers. And if, a big if, they make the ads I get more targeted,it’s a useful service for me too.
Apple claims to be doing this for privacy reasons.
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https://www.theverge.com/2017/6/6/15747300/apple-safari-ad-t…
The systems hit hardest by Safari’s new policy will be third-party systems like Criteo or Adroll, which silently coordinate cookies in the background of thousands of sites. Not coincidentally, Criteo’s stock plummeted in the wake of the announcement.
That’s much less of a problem for Google and Facebook, which already dominate online ads.
But the new Safari policy will still put those ad companies at a permanent disadvantage to more powerful players like Google and Facebook. Those companies were already outmatched — with Google and Facebook capturing 90 cents of every new dollar spent on online ads — and the new browser moves will make it even harder for them to survive. ,
So Apple moves in favor of oligopoly. Favoring the giants, hurting smaller players.
But few use Safari much, Apple as done little to improve it over the years .I am an Apple guy but mostly use Chrome as the browser. And I do not block ads .which are necessary or most WWW sites to exist.
Thanks for the explanation Mauser.
I’ll note the past 5 days have seen the price slide about $8 and much of that was prior to Apple’s announcement which I tend to agree will have little impact on CRTO.
Ad blocking was a big reason the stock price languished for a considerable time. So far, it hasn’t really impacted their business at all. Not to say things can’t change, but this type of reaction proved to be a good time to buy CRTO last time.
Take care,
A.J.
Of course, Chrome is apparently coming out with built-in ad blocking … which would have a wee bit larger impact if people generally have it on.
https://www.netmarketshare.com/browser-market-share.aspx?qpr…
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Of course, Chrome is apparently coming out with built-in ad blocking … which would have a wee bit larger impact if people generally have it on.
Is anyone a member of the Fool service that recommends Criteo? If so, I’d be really interested to know the Risk rating. In my opinion the Fool typically underestimates those quite a bit. It seems to me if browsers can threaten CRTO’s livelihood the risk rating should be very high.
The 5 and 3 would be interesting to read as well, if it’s ok to post that here.
Bear
Bear,
Criteo is a 9 on the risk rating and one of the 3 “red flags” is “Widespread adoption of ad-blocking technologies that makes Criteo’s tracking techniques ineffective.”
Right now, with Apple using ad-blocking on Safari doesn’t mean WIDESPREAD, but if you start adding additional browsers including Google’s Chrome it would definitely start bringing that “red flag” into play.
But, what percentage of people using a browser will go in and turn on the ad-blocker? or will the ad-blocker automatically be turned on and a user would have to turn it off?
JK
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Thanks JK. Nine seems comically (or tragically low). The 5 and 3 analyses usually seem more helpful, and I guess that one makes sense. Not sure of the specifics or how widespread yet, and I’m not a CRTO shareholder, but that’s a threat I don’t want any part of.
Bear
If ad blockers become the rule most sites on the internet will collapse for lack of funds.
Somebody has to pay for them,so tt’s the vendor, you the user with fees and charges , or revenue from ads.
It is advertisements , however much you dislike them , that pay for most of what you get on the internet. Ad trackers help make sure advertisers get their money’s worth , without them there will be fewer advertisers and thus fewer free sites.
Me, I like free sites, I like wide site selection, and if I am going to have ads ,I like targeted ones.
Apple’s move is bad for the internet and gives even more power to Google.
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Bear,
Found these little nuggets explaining two of the NO’s in the risk rating…looks like a Google Chrome ad-blocker could be devastating.
Is the company free of any customer or supplier that accounts for more than 10% of sales?
No. Criteo relies on advertising exchange platforms for most of its ad space purchases, and the company reports that Alphabet (NASDAQ: GOOGL) and AppNexus ad inventory collectively accounted for 29% of cost of sales in 2014.
Is it free from stronger competitors?
No. In the wider advertising industry, Criteo competes against much larger competitors such as Alphabet and Yahoo (NASDAQ: YHOO), among many others.
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Bear,
Found these little nuggets explaining two of the NO’s in the risk rating…looks like a Google Chrome ad-blocker could be devastating.
Is the company free of any customer or supplier that accounts for more than 10% of sales?
No. Criteo relies on advertising exchange platforms for most of its ad space purchases, and the company reports that Alphabet (NASDAQ: GOOGL) and AppNexus ad inventory collectively accounted for 29% of cost of sales in 2014.
Is it free from stronger competitors?
No. In the wider advertising industry, Criteo competes against much larger competitors such as Alphabet and Yahoo (NASDAQ: YHOO), among many others.
These were updated in 2016, yet the 29% figure is from 2014.
JK
https://www.vox.com/new-money/2017/6/5/15729688/google-chrom…
https://techcrunch.com/2017/04/19/google-said-to-be-planning… google ad blocking
Google will have to be very careful, it is treading close to anti trust monopoly grounds.
They didn’t nail MSFT for being a monopoly (it wasn’t) but for acting like a monopoly (it did)
Hi JK,
I am not sure that you should be giving information from the paid site and putting it onto a public site. If anyone wants to read what is on the paid site they are free to sign up for a 30 day trial.
Andy
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Self playing videos are an ABOMINATION! I usually just close the page or turn off the volume. I now have an ad blocker. Some websites detect the ad blocker and won’t let you see the contents. Since they use JavaScript to detect the ad blocker all you have to do is turn off JavaScript and reload the page.
I haven’t tried this yet
How To Disable Auto-Play Videos in Safari – macOS
http://macreports.com/disable-auto-play-videos-safari-macos/…
Denny Schlesinger
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Is the ad blocker for mobile Safari as well as in the desktop version? A little over 60% (and growing) of CRTO’s revenue comes from mobile…
This same issue came up a year or two ago (with Safari then too) and turned out to be a non issue. I vaguely remember reading then that it would not have much effect on revenue because 1. People don’t turn on ad blockers as much as you would think and 2. Criteo doesn’t rely on JavaScript to do what they do. Not saying it’s the same situation now but it did provide some nice entries last time around.
I recently redeployed my CRTO position elsewhere but may have to take another look.
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Is the ad blocker for mobile Safari as well as in the desktop version? A little over 60% (and growing) of CRTO’s revenue comes from mobile…
I don’t know who you are asking but I don’t have mobile so I don’t know the answer to your question.
Denny Schlesinger
On iPhone, Chrome usage has outpaced Safari by a massive 127 percent since January of 2015
https://thenextweb.com/apple/2016/03/18/study-shows-chrome-b…
on all mobile devices safari does not even come close to Chrome
http://gs.statcounter.com
fact is on mobile or PC Safari is not very popular
and for Criteo apparently it is even less important
whatever you think, it is not good news for CRTO. OTOH it may not be significantly, even noticeably bad news either.