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The Redbubble Ltd (ASX: RBL) share price has continued its incredible run in 2021.

After recording a gain of 388% in 2020, the ecommerce company’s shares are already up a further 20% this year to a record high of $6.63.

Why is the Redbubble share price on fire?

Investors have been fighting to get hold of the company’s shares this week despite there being no news out of it.

However, with the UK in lockdown and the US still reporting sky high COVID-19 cases, trading conditions are looking very favourable for Redbubble right now.

In addition to this, I have written previously about a bullish broker note out of Goldman Sachs from last year.

Goldman Sachs has a buy rating and $6.25 price target on its shares. At the close on New Year’s Eve, Redbubble’s shares were trading below this at $5.52.

So why are its shares still going higher?

One interesting thing from that particular broker note was that Goldman Sachs suggested Redbubble’s shares could be worth even more than its price target at the time.

This was if it could demonstrate consistency and potential revenue growth rates more in line with fellow ecommerce company Temple & Webster Group Ltd (ASX: TPW).

Goldman explained: “TPW has a materially more expensive rating reflecting, in our view, its more consistent execution track record as discussed earlier. If RBL were to achieve a revenue CAGR over our 10yr DCF horizon similar to that of TPW (which is 21% vs. 11% for RBL), our DCF value for RBL would increase from A$4.75 to A$10.75 (assuming no change to our EBITDA margin forecasts).”

“Given there is structurally no reason why we believe RBL’s medium-to-long-term growth trajectory should be lower than TPW’s, this would suggest there is arguably more option value in our target price for RBL relative to TPW, but we emphasise that consistency in execution remains key to close this hypothetical discount,” it added.

It’s possible that investors are becoming more confident that Redbubble will achieve this and the market will rerate its shares higher in the future.

More reading

• 2 ASX shares to buy that are growing rapidly
• My biggest regrets from 2020
• Can the Redbubble (ASX:RBL) share price continue its run in 2021?
• These ASX shares are growing rapidly in FY 2021
• Got money to invest? Here are 3 ASX shares to buy

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The ikegps Group Ltd (ASX: IKE) share price opened 10% higher today on news the company has entered an agreement to acquire assets of Visual Globe LLC. 

At the time of writing, the ikeGPS share price is holding today’s 10% gain at $1.10.

So what are the terms of the agreement?

In today’s announcement, the company said the Visual Globe assets were expected to deliver revenue targets totalling US$21 million over the period to March 2024 (80% of the total earn-out). It would also retain key people to 31 March 2024 (20% of the total earn-out).

Following ikeGPS’s initial payment of US$3.3 million, an additional US$4.99 million of cash and up to $2.1 million in ikeGPS shares will be paid to Visual Globe. The additional payments are based on how the Visual Globe assets perform over the three-year period ending 31 March 2024.

Arrangements like this are referred to as ‘earn out payments’. Some investors see these as a nice insurance policy to ensure that the assets acquired perform to expectations.

What type of assets did ikeGPS acquire?

The ikeGPS technology is used to measure and locate utility poles. This information can be then used to improve electrical infrastructure. We spoke more about what ikeGPS technology gets up to back in September.

Through the Visual Globe arrangement, ikeGPS will benefit from additional resources that enable the company to incorporate new tools in its utility pole analysis services. This includes access to drones and smart phone technology. This means that ikeGPS can collect and analyse significantly higher amounts of data, a valuable service to the company’s target markets.

On the topic of target markets, Visual Globe is a US-based company with established relationships in the North American market. Will this new exposure lead to opportunities that keep the ikeGPS share price moving in a positive direction?

What lies ahead for the ikeGPS share price?

Commenting on the deal, ikeGPS CEO Glenn Milnes said:

This transaction with Visual Globe allows IKE to expand our addressable markets and adds important advanced bulk data collection & analysis capability.

This enables IKE to continue to disrupt often inefficient or manual work practices across the electric utility and communications markets.

As ikeGPS stretches its legs into new markets, investors have reacted positively so far. We’ll learn more about how the deal will work out as the company progresses deeper into the three-year arrangement.

More reading

• Why the Cann (ASX:CAN) share price has backflipped today
• Lovisa (ASX:LOV) share price tumbles as pandemic grips UK
• Why Dacian Gold, Lovisa, MyFiziq, & Zip shares are dropping lower
• Why has the Zip (ASX:Z1P) share price gone nowhere in FY21?
• ASX 200 down 0.3%: BHP & Rio Tinto rise, big four banks drop, Zip sinks

Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Cann Group Ltd (ASX: CAN) share price has backflipped this morning after the company reported a strategic investment. At market open, the Cann share price fell to an intraday low of 59.5 cents. However, following release of the announcement during morning trade, Cann shares then stormed more than 9% higher to 65 cents.

At the time of writing, the company’s shares have partially retreated to currently trade at 61.5 cents.

What’s driving the Cann share price?

The Cann share price jumped higher today following news of the company’s latest investment.

According to this morning’s release, Cann Group has invested CAD$1 million into a CAD$5 million capital raise from Iuvo Therapeutics Limited.

Based in Germany, Iuvo is a leading cannabinoid therapy importer and distributor, holding GMP certification licences. The company orders medicinal cannabis products and delivers them to over 20,000 pharmacies across Europe.

The investment will translate into Cann holding roughly 2% of Iuvo’s issued ordinary shares. Once the capital raise is complete, Iuvo will use the funds to expand its sales and marketing channels, and help build a new manufacturing and formulation facility in Malta.

In return for the strategic investment made, Cann will have exclusive rights to supply Iuvo with its external medicinal cannabis extracts. However, from 31 December 2021, the existing agreement will transfer over to preferred, non-exclusive supplier status.

Supply order

As a result of the partnership, Iuvo placed an initial order with Cann Group for 19,000 units of the company’s 30ml extract products. Shipment to Germany is due to be completed some time next month, pending regulatory clearances.

In addition, Cann stated that being compliant with the German monograph for cannabis extracts, it will be one of the first products of its type to market.

Management commentary

Cann Group CEO Mr Peter Crock highlighted the importance of the supply agreement by saying:

We believe this initial order represents the largest shipment of product produced in Australia for export markets and is a tangible sign of Iuvo’s commitment to servicing its growing customer base with safe, quality GMP standard medicinal cannabis.

Adding to Mr Crock’s comments, Iuvo managing director Mr Daniel Seidl said:

This strategic investment will enable Iuvo to expand its patient reach throughout Germany and Europe. Cann Group’s extracts are manufactured from Australian GMP Cannabis flower, providing regulatory, investment and supply security in a market with superior pharmaceutical standards.

Cann share price snapshot

The Cann share price is down 35% since this time last year, reflecting a disappointing result for long-term shareholders.

By late October last year, the company’s shares had fallen to a 52-week low of 29 cents. Since then, the Cann share price has only partially recovered. In contrast, last January, its shares were swapping hands for as much as $1.84 a piece.

More reading

• Why BHP, Cann, Nick Scali, & Ramelius shares are pushing higher
• Cann (ASX:CAN) share price shoots 16% higher on positive update
• 5 top ASX cannabis shares in 2020
• ASX pot stocks have been skyrocketing in December

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Australian fashion jewellery company Lovisa Holdings Ltd (ASX: LOV) will temporarily close its stores in the United Kingdom, after a national lockdown was ordered by British Prime Minister Boris Johnson.

The Lovisa share price has fallen 3.6% on the news to $11.20.

UK lockdown

In a short release to the market this morning, Lovisa said its 42 UK stores would be closed temporarily – effective immediately – with the timing for re-opening subject to further government advice.

The company says its other stores globally as well as its online business will remain open and trading.

This follows a British government announcement of a further lockdown in the UK in response to increasing COVID-19 cases.

The country has been gripped by a second wave of the COVID-19 pandemic, with a new mutant strain identified as the main cause of the latest infections.

Just a few hours ago, the UK announced an immediate shuttering of economic, social and educational activity until at least mid-February.

More about Lovisa

Lovisa is a fashion jewellery company operating mainly in Australia, where it has 152 stores; and South Africa, with 62 stores.

The company has attempted a foray into the European market only recently.

In early December, Lovisa acquired the European retail store network of German wholesaler Beeline GmbH, for just 60 Euros (yes 60 Euros, not 60 million).

That purchase is expected to add more than 80 stores to the Lovisa global store network across seven European countries.

Beeline operates 114 fashion jewellery and accessories stores across Germany, Switzerland, the Netherlands, Belgium, Austria, Luxembourg, and France, under the brands Six and I Am.

About the Lovisa share price

The Lovisa share price has lost about 6% in value over the past year. It started 2020 at close to $12, before plunging to $2.34 at the height of the pandemic in March – its 52-week low.

The company commands a market cap of $1.25 billion.

More reading

• Why Dacian Gold, Lovisa, MyFiziq, & Zip shares are dropping lower
• Here’s why this fundie thinks Lovisa (ASX:LOV) share price will rise
• Why CSL, Lovisa, Lynas, & Syrah shares are dropping lower

Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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In afternoon trade the S&P/ASX 200 Index (ASX: XJO) is out of form and in the red. The benchmark index is currently down 0.3% to 6,665.2 points.

Four shares that have fallen more than most today are listed below. Here’s why they are dropping lower:

Dacian Gold Ltd (ASX: DCN)

The Dacian Gold share price is down over 1% to 45.5 cents following the release of its quarterly update. The gold miner appears to have disappointed investors with its second quarter production of 27,162 ounces. This is down from 32,799 ounces in the first quarter. Though, despite this, Dacian remains on course to achieve its full year production guidance of 110,000 ounces to 120,000 ounces.

Lovisa Holdings Ltd (ASX: LOV)

The Lovisa share price has fallen 3.5% to $11.19. Investors have been selling the fashion jewellery retailer’s shares after it revealed that its UK stores would be closing temporarily because of COVID-19. All 42 UK stores have been closed until further notice. All other stores and its online business remain open.

MyFiziq Ltd (ASX: MYQ)

The MyFiziq share price has fallen 3.5% to $1.23. This follows a subdued response by investors to the release of an announcement this morning in relation to a new app launch using its technology. The Biomorphik app is now available on both Google Play and Apple Store. It allows people to monitor their bodies closely and pre-empt potential issues before they become prohibitive to the user’s health.

Zip Co Ltd (ASX: Z1P)

The Zip share price is down 3.5% to $5.40. This is despite there being no news out of the buy now pay later (BNPL) provider today. However, it is worth noting that short interest is rising strongly. Short sellers appear to be going after the company due to rising competition in the key US market. This follows BNPL launches by giants such as Shopify and PayPal late last year.

More reading

• Why has the Zip (ASX:Z1P) share price gone nowhere in FY21?
• ASX 200 down 0.3%: BHP & Rio Tinto rise, big four banks drop, Zip sinks
• The top performing ASX 200 tech shares of 2020 
• Could the Zip (ASX:Z1P) share price make a comeback in 2021? 
• These are the 10 most shorted shares on the ASX

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Zip Co Ltd (ASX: Z1P) shares struggled in the second half of 2020 despite the company’s strong growth performance and positive announcements. With everything that’s going for the buy now, pay later (BNPL) company, why has the Zip share price gone nowhere in the first half of FY21? 

Popularity didn’t translate to a higher Zip share price 

Zip has proven itself to be one of the most popular shares on the ASX. Online broker Superhero revealed that Zip was the most popular stock on its platform in 2020.

Similarly, Commsec’s weekly most traded Australian shares update regularly features Zip shares. In its most recent update for shares traded between 7 to 12 December, Zip shares were the second most traded on the ASX. Buyers accounted for 59% of trades, even though the Zip share price lost ground during that week.  

Major achievements in FY21 

Despite the underperformance of the Zip share price, the company delivered a series of positive achievements in FY21 including:

• 20 July: Signed agreement with Respiri Ltd (ASX: RSH), providing entry into Australian pharmacy segment.
• 26 August: Announced partnership between Zip Business and eBay for Australian SMEs. 
• 1 September: Completed 100% acquisition of QuadPay.
• 20 October: Launched ‘Tap & Zip’ product for use anywhere that accepts Visa.
• 11 December: Partnership between Zip Business and Facebook announced.
• 16 December: Executed $120 million capital raising.

Zip share price not the only underperformer 

While it might feel like there is something fundamentally wrong with Zip, the broader buy now pay later sector also struggled to make headway after the August reporting season. To add some perspective, let’s take a look at the performance of the following ASX BNPL shares between 1 August and 31 December 2020: 

• Openpay Group Ltd (ASX: OPY) down 32% 
• Sezzle Inc (ASX: SZL) down 8% 
• Splitit Ltd (ASX: SPT) down 6%
• Laybuy Holdings Ltd (ASX: LBY) down 36%
• Humm Group Ltd (ASX: HUM) up 2% 

The only outlier was, of course, the Afterpay Ltd (ASX: APT) share price which soared 70% in that timeframe. 

Foolish takeaway

Despite its achievements to date, big brokers are still wary of buy now pay later shares. On 18 December, Macquarie Group Ltd (ASX: MQG) saw Zip’s recent capital raising as a small positive for the business, but maintained a target of just $5.05 for the Zip share price. This represents a 6.1% discount to the $5.38 Zip shares are currently trading at. 

More reading

• ASX 200 down 0.3%: BHP & Rio Tinto rise, big four banks drop, Zip sinks
• The top performing ASX 200 tech shares of 2020 
• Could the Zip (ASX:Z1P) share price make a comeback in 2021? 
• These are the 10 most shorted shares on the ASX
• 3 exciting ASX payment shares to buy in January

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Facebook and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Facebook, Humm Group Limited, and Sezzle Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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At lunch on Tuesday the S&P/ASX 200 Index (ASX: XJO) is giving back some of Monday’s strong gains. At the time of writing, the benchmark index is down 0.3% to 6,665.2 points.

Here’s what has been happening on the market today:

Bank shares act as a drag.

After helping to drive the ASX 200 index higher on Monday, the big four banks are helping drag it lower on Tuesday. At lunch, all four banks are in the red and weighing heavily on the performance of the benchmark index. The worst performer in the group has been the National Australia Bank Ltd (ASX: NAB) share price. Its shares are down 1.3% at the time of writing.

Gold miners charge higher.

One area of the market that is performing particularly well today is the gold sector. Thanks to a rise of almost 3% in the spot gold price, investors have been bidding the gold miners higher. This has led to the likes of Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) pushing higher and driving the S&P/ASX All Ordinaries Gold index up 3% at lunch.

Mining giants rise.

BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) shares are defying the market weakness and are storming higher today. Investors have been buying their shares after the iron ore price climbed higher. According to Metal Bulletin, seaborne prices rose due to solid demand in steel markets and positive sentiment after the New Year holiday. The price of 62% fines iron ore lifted 3% to US$165.29 per tonne.

Best and worst ASX 200 performers.

The best performer on the ASX 200 on Tuesday has been Ramelius Resources Limited (ASX: RMS) share price with a 7% gain. This follows the release of a strong second quarter update. The worst performer on the index has been the Zip Co Ltd (ASX: Z1P) share price with a 4% decline. This is despite there being no news out of the buy now pay later provider. Though, it is worth noting that short interest is rising strongly.

More reading

• Why has the Zip (ASX:Z1P) share price gone nowhere in FY21?
• Why BHP, Cann, Nick Scali, & Ramelius shares are pushing higher
• Why the Ramelius (ASX:RMS) share price is storming higher today
• Why ASX energy stocks are set to be among the worst performers on the ASX today
• 5 things to watch on the ASX 200 on Tuesday

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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In late morning trade the S&P/ASX 200 Index (ASX: XJO) is off its lows but still in the red. At the time of writing, the benchmark index is down 0.3% to 6,665.1 points.

Four shares that have not let that hold them back are listed below. Here’s why they are pushing higher:

BHP Group Ltd (ASX: BHP)

The BHP share price is up 2.5% to $44.13. Investors have been buying the mining giant’s shares on Tuesday after the iron ore price climbed higher. According to Metal Bulletin, seaborne prices climbed due to firm demand in steel and positive sentiment after the New Year holiday. The 62% fines iron ore price rose 3% to US$165.29 per tonne.

Cann Group Ltd (ASX: CAN)

The Cann share price has climbed over 3% to 62 cents. This follows the an announcement of a supply order in Europe. Cann will supply Iuvo Therapeutics with medicinal cannabis extracts until 31 December 2021. Iuvo has placed an initial 19,000 unit order for Cann product, which is expected to be shipped to Germany within the next month. Management believes this initial order represents the largest shipment of product produced in Australia for export markets.

Nick Scali Limited (ASX: NCK)

The Nick Scali share price has zoomed 7.5% higher to $10.64 after providing its guidance for the first half of FY 2021. The furniture retailer has performed very strongly during the half and expects to report a net profit of $40.5 million for the six months. This will be double what it achieved in the prior corresponding period.

Ramelius Resources Limited (ASX: RMS)

The Ramelius share price has jumped 7% to $1.90. Investors have been buying the gold miner’s shares following a rise in the spot gold price and the release of its second quarter update. In respect to the latter, Ramelius outperformed its guidance and achieved production of 72,896 ounces. This means the company has also outperformed its first half production guidance.

More reading

• Why the Nick Scali (ASX:NCK) share price just hit a new, all-time high
• Why the Ramelius (ASX:RMS) share price is storming higher today
• 5 things to watch on the ASX 200 on Tuesday
• Will the Fortescue (ASX:FMG) share price double again in 2021?
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Raiz Invest Ltd (ASX: RZI) share price is up this morning after the company announced its funds under management (FUM) and active customers metrics for December 2020.

At the time of writing, shares in the mobile-focused micro-investing platform are trading hands at $1.02 cents, up 4.1%.

By the numbers

The metrics show that across its operations, active customers increased by 8.1% month over month to 343,573. Active customers have grown by 62.3% compared to this time last year.

Funds under management are a key metric for the business as it derives revenue by charging a management fee on accounts over $10,000. In Australia, FUD grew by 4.5% month over month to $524.57 million for its core ‘retail’ portfolio offerings. While its superannuation segment grew by 2.3% month on month to $81.02 million.

The month-on-month growth has slowed from the November metrics update, where its retail and superannuation FUD had grown by 10.9% and 8.7% respectively. Perhaps customers were splurging more on Christmas gifts than investing in December.

Commenting on the update, Raiz CEO George Lucas said:

We remain confident that we could exceed the $1 billion milestone for FUM, during 2021 calendar year. We only exceeded $500 million in September, and based on the past three-month growth rate, this goal is achievable.

Mr Lucas also touched on the importance of the result at the end of a challenging year:

As we know, 2020 has been an extremely challenging year, making our record achievements in the year hard fought.

Raiz reportedly also placed 27th in Deloitte’s Technology Fast 50 Winners Report for 2020. A testament to the company’s 254% annual growth.

Looking forward

Raiz Invest enters the year, as described by Mr Lucas, “…well positioned to continue this strong growth path into 2021, confident of being able to build on the hard-earned achievements of the team in 2020.”

More reading

• Apple’s latest privacy move is a blow for Facebook, but not The Trade Desk. Here’s why
• Qantas (ASX:QAN) sells international flights for July
• Why the Nick Scali (ASX:NCK) share price just hit a new, all-time high
• What is happening with the Douugh (ASX:DOU) share price?
• Which ASX 200 healthcare shares delivered the top returns in 2020?

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The world of digital advertising is once again on the verge of a sea change, the result of the latest privacy move by Apple Inc (NASDAQ: AAPL). With an upcoming update to iOS 14, iPhone users will be required to explicitly consent to allow app publishers to track them across the apps and websites they visit. This has the digital-advertising industry up in arms.

Facebook Inc (NASDAQ: FB) is sounding the alarm, saying its business will be “severely impacted” by Apple’s decision. The company has even gone so far as to take out a full-page ad in The Wall Street Journal decrying the move and claiming it will be harmful to small businesses, though its claims are tenuous, at best. 

It’s important to note, however, that not all digital advertisers are created equal. Take The Trade Desk Inc (NASDAQ: TTD), for example. It said it doesn’t expect the change to create a material impact on its business. What’s an investor to think?

IDFA: A primer

To understand what all the fuss is about, it’s important to know what’s actually happening. The identifier for advertisers (IDFA) is a unique ID assigned to each iOS device, which currently allows app publishers to track the activity on a specific device as it moves between apps and websites, in order to provide more individualized and targeted advertising.

In previous versions of iOS, users could opt-out by choosing the “limit ad tracking” option in their device settings. This resulted in roughly 30% of users opting out in 2020. Apple announced that it will roll out an update to iOS 14, now scheduled for early 2021, that will notify iPhone users of the tracking and specifically require users to opt-in for each app, in order to continue being tracked. It’s estimated that after the update, the number of users sharing their data will drop to between 10% and 15%, plummeting from roughly 70% today. 

With an installed base of more than 1.5 billion devices worldwide and an estimated 900 million iPhones, Apple could have a significant impact on the ability of marketers to provide relevant advertising to iOS device users. 

A tale of two advertisers

Facebook has been justifiably concerned about the development, as its ability to deliver targeted ads to iPhone users will be severely limited. The company has conducted internal testing and seen “more than a 50% drop” in the revenue generated by its Audience Network advertising platform when it removed the ability to offer up these highly targeted, personalized ads. Facebook even said it’s considering shuttering the platform for iOS 14. 

The Trade Desk is not expecting the same kind of hit. In the latter company’s third-quarter conference call, CEO Jeff Green went to great pains to lay out why Apple’s move isn’t expected to impact its business very much. Green said that only about 10% of the advertising spend conducted on its platform is reliant on IDFA, a figure that has been consistent for quite some time, saying it “doesn’t have a material impact to our business.” The Trade Desk serves more than 12 million ads every second, with only about 1 million of those related to IDFA. 

Green also points out that limiting IDFA across all apps will have a negative impact on the customer experience, specifically citing cases like Netflix or Dropbox. After a time, he theorizes that companies will go back to consumers, inviting them to “upgrade” their experience by opting back in, which he believes will ultimately be successful.

A final note

By limiting its exposure to IDFA, The Trade Desk has insulated itself against the issues now faced by Facebook. It remains one of the undisputed leaders in programmatic advertising but is still just getting started. The Trade Desk generated revenue of $661 million last year, which pales in comparison to the roughly $29 billion that was spent on programmatic advertising in 2019. 

Fears regarding the impact of Apple’s move were partially responsible for a decline in The Trade Desk’s stock price in recent weeks, as shares have dipped nearly 16%. That gives astute investors the opportunity to buy this high-flyer at a significant discount.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• 3 catalysts for Apple stock in 2021
• If you thought 2020’s tech share rally was impressive, hold on for 2021!
• Forget Tesla. Facebook is a better buy now
• FAANG stocks make their case to lead the Nasdaq in 2021
• Report: authorities rejected Facebook offer to foster competitors’ growth

Danny Vena owns shares of Apple, Facebook, Netflix, and The Trade Desk. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Apple, Facebook, Netflix, and The Trade Desk. The Motley Fool Australia has recommended Apple, Facebook, Netflix, and The Trade Desk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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