Online advertising-optimization specialist DoubleVerify earns a spot on IBD Leaderboard as it debuts a first-of-its-kind partnership with Netflix. DV stock is now retesting a buy zone while NFLX stock bounces off its 50-day line as the streaming video company gets set to report Q3 earnings Tuesday.
The DoubleVerify agreement enables media verification for Netflix, maximizing advertiser performance across its platform. Leveraging DV's technology and data, the deal ensures that real people are viewing video content from Netflix advertisers, safe from fraud and invalid traffic.
Netflix has also tapped Integral Ad Science as a partner to provide transparency in ad performance.
DoubleVerify is global in scale like Netflix, boasting 221 million paid members in over 190 countries. Around the world, hundreds of Fortune 500 advertisers and the world's largest brands turn to DV's data analytics to drive and track their campaigns, and to maximize their digital advertising investments.
DV offers products across every major vertical, including financial services, telecom, automotive, retail, travel, luxury and pharmaceuticals.
Promising Growth Lifts DoubleVerify To IPO Leadership
Based in New York, DoubleVerify came public in April 2021.
Over the past three years, DV has posted average annual sales growth of 40%. Last quarter, the online advertising leader delivered a 44% revenue increase.
While choppy and spotty over the last eight quarters, the company has periodically flashed impressive results. For example, DV posted 175% Q2 EPS growth but it was based on a prior-year quarter that showed a loss.
With Q3 numbers expected Nov. 8, analysts see DoubleVerity posting a 140% EPS gain. And on an annual basis, earnings have vaulted to an estimated 52 cents per share this year vs. 2 cents in 2018. If 2022 plays out as Wall Street expects, that would mark impressive 190% EPS growth.
These expectations are driving demand for DV stock.
While DoubleVerify did not make the latest list of new buys by the best mutual funds, 32 funds with an "A+" rating from IBD own shares. DV stock also sports a "B" Accumulation/Distribution Rating and a 1.2 up/down volume ratio.
In addition, the number of funds with a position in DV has risen in each of the last five quarters.
DV Stock Retakes Earlier Buy Point
DoubleVerify initially cleared a 28.07 buy point in a cup with handle on Sept. 8.
DV stock slipped below that entry and has seesawed across the buy zone as the market indexes have shown heightened volatility. It has generally held support at its 50-day moving average in the last month and is now trading above that key line and its 21-day line.
The buy zone is 28.07 to 29.47, based on the cup-with-handle entry. It remains within that range Monday afternoon.
Let's see if Tuesday's Netflix report sparks new demand for DV stock as the company gets set to report Nov. 8.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
