New Study: AI Ads Match Human Creative in Major Report from Columbia University, Harvard University, Technical University of Munich, and Carnegie Mellon University; Taboola Data Shows AI Wins by Appearing Authentically Human and Prioritizing Visual Trust Signals

What Happened?

A number of stocks fell in the afternoon session after geopolitical tensions between the United States and the European Union escalated, sparking fears of a renewed trade war. 

The broader markets adopted a "risk-off" mode, with investors seeking safe-haven assets amidst the uncertainty. The market's primary fear gauge, the VIX, jumped to a fresh eight-week high, signaling rising investor anxiety. The dispute, centered on Greenland, raised the possibility of a revived trade conflict, which could disrupt global supply chains and economic activity. Mega-cap technology stocks, many of which have significant international sales and operations, were particularly affected by the souring risk sentiment as a potential trade war threatens their global business models.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Advertising & Marketing Services company Taboola fell 2%. Is now the time to buy Taboola? Access our full analysis report here, it’s free.
• Digital Media & Content Platforms company Rumble fell 0.2%. Is now the time to buy Rumble? Access our full analysis report here, it’s free.
• Hardware & Infrastructure company Xerox fell 6.4%. Is now the time to buy Xerox? Access our full analysis report here, it’s free.
• Professional Staffing & HR Solutions company ManpowerGroup fell 2.3%. Is now the time to buy ManpowerGroup? Access our full analysis report here, it’s free.

Zooming In On Xerox (XRX)

Xerox’s shares are extremely volatile and have had 40 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 6 months ago when the stock dropped 19.6% on the news that the company reported a significant loss for its second quarter and widely missed analyst profit forecasts. 

The company posted an adjusted loss of $0.64 per share, a stark contrast to the $0.07 profit analysts had predicted. While revenue slightly surpassed expectations, this earnings failure alarmed investors. The company's financial health showed clear signs of strain as its free cash flow, a key measure of cash generation, plunged to a negative $30 million from a positive $115 million in the prior year. This decline stemmed from falling gross margins, which were squeezed by tariffs and increased product costs. Revenue from the core Print and Other segment also contracted, which highlighted soft demand for the company's equipment.

Xerox is up 2.6% since the beginning of the year, but at $2.53 per share, it is still trading 74.3% below its 52-week high of $9.84 from January 2025. Investors who bought $1,000 worth of Xerox’s shares 5 years ago would now be looking at an investment worth $119.95.

Let’s dig into the relative performance of Magnite and its peers as we unravel the now-completed Q3 advertising & marketing services earnings season.

The sector is on the precipice of both disruption and growth as AI, programmatic advertising, and data-driven marketing reshape how things are done. For example, the advent of the Internet broadly and programmatic advertising specifically means that brand building is not a relationship business anymore but instead one based on data and technology, which could hurt traditional ad agencies. On the other hand, the companies in the sector that beef up their tech chops by automating the buying of ad inventory or facilitating omnichannel marketing, for example, stand to benefit. With or without advances in digitization and AI, the sector is still highly levered to the macro, and economic uncertainty may lead to fluctuating ad spend, particularly in cyclical industries.

The 7 advertising & marketing services stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.8% while next quarter’s revenue guidance was 0.9% below.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Magnite

Born from the 2020 merger of Rubicon Project and Telaria, Magnite operates the world's largest independent sell-side advertising platform that automates the buying and selling of digital advertising inventory across all channels and formats.

Magnite reported revenues of $179.5 million, up 10.8% year on year. This print exceeded analysts’ expectations by 0.9%. Overall, it was a satisfactory quarter for the company with a narrow beat of analysts’ revenue estimates.

“Magnite once again exceeded total top-line expectations, delivering an exceptional CTV result, with growth of 18%, or 25% excluding political. Our CTV success is being driven by our largest publisher partners and strong agency and DSP momentum. ClearLine, buyer marketplaces, and live sports remain bright spots in CTV. We are also seeing early benefits from our streamer.ai acquisition. The additional AI tools have supported new business wins, particularly among SMB advertisers, further enhancing our competitive positioning. DV+ continues to perform well, growing in line with expectations, driven by exclusive partner expansion. We were encouraged by the Google remedies hearings and look forward to the positive impact on our DV+ business once remedies are implemented.” said Michael G. Barrett, CEO of Magnite.

The stock is down 19.3% since reporting and currently trades at $14.40.

Best Q3: Taboola

Often appearing as those "You May Also Like" or "Recommended For You" boxes at the bottom of news articles, Taboola operates a digital platform that recommends personalized content to users across publisher websites, helping both publishers monetize their sites and advertisers reach target audiences.

Taboola reported revenues of $496.8 million, up 14.7% year on year, outperforming analysts’ expectations by 6.3%. The business had a stunning quarter with a beat of analysts’ EPS and revenue estimates.

The market seems happy with the results as the stock is up 25.2% since reporting. It currently trades at $4.17.

Slowest Q3: Clear Channel Outdoor

With thousands of digital and traditional displays lighting up America's highways, city streets, and airports, Clear Channel Outdoor operates billboards, street furniture, and airport displays, connecting advertisers with millions of consumers across the US.

Clear Channel Outdoor reported revenues of $405.6 million, up 8.1% year on year, exceeding analysts’ expectations by 0.9%. Still, it was a mixed quarter as it posted a significant miss of analysts’ EPS estimates.

Interestingly, the stock is up 19.6% since the results and currently trades at $2.14.

Read our full analysis of Clear Channel Outdoor’s results here.

MediaAlpha

Powering nearly 10 million consumer referrals each month in the insurance marketplace, MediaAlpha operates a technology platform that connects insurance carriers with high-intent consumers shopping for property, casualty, health, and life insurance products.

MediaAlpha reported revenues of $306.5 million, up 18.3% year on year. This print beat analysts’ expectations by 7.6%. It was a strong quarter as it also recorded a solid beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

MediaAlpha pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 2.7% since reporting and currently trades at $11.42.

Read our full, actionable report on MediaAlpha here, it’s free.

QuinStreet

Founded during the dot-com era in 1999 and specializing in high-intent consumer traffic, QuinStreet operates digital performance marketplaces that connect clients in financial and home services with consumers actively searching for their products.

QuinStreet reported revenues of $285.9 million, up 2.4% year on year. This result topped analysts’ expectations by 2.1%. More broadly, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ revenue estimates but revenue guidance for next quarter meeting analysts’ expectations.

The stock is up 5.3% since reporting and currently trades at $14.60.

Read our full, actionable report on QuinStreet here, it’s free.

Let’s dig into the relative performance of MediaAlpha and its peers as we unravel the now-completed Q3 advertising & marketing services earnings season.

The sector is on the precipice of both disruption and growth as AI, programmatic advertising, and data-driven marketing reshape how things are done. For example, the advent of the Internet broadly and programmatic advertising specifically means that brand building is not a relationship business anymore but instead one based on data and technology, which could hurt traditional ad agencies. On the other hand, the companies in the sector that beef up their tech chops by automating the buying of ad inventory or facilitating omnichannel marketing, for example, stand to benefit. With or without advances in digitization and AI, the sector is still highly levered to the macro, and economic uncertainty may lead to fluctuating ad spend, particularly in cyclical industries.

The 7 advertising & marketing services stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.8% while next quarter’s revenue guidance was 0.9% below.

In light of this news, share prices of the companies have held steady as they are up 3.8% on average since the latest earnings results.

MediaAlpha

Powering nearly 10 million consumer referrals each month in the insurance marketplace, MediaAlpha operates a technology platform that connects insurance carriers with high-intent consumers shopping for property, casualty, health, and life insurance products.

MediaAlpha reported revenues of $306.5 million, up 18.3% year on year. This print exceeded analysts’ expectations by 7.6%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ revenue and EPS estimates.

MediaAlpha scored the biggest analyst estimates beat and fastest revenue growth of the whole group. Unsurprisingly, the stock is up 6.6% since reporting and currently trades at $11.86.

Read why we think that MediaAlpha is one of the best advertising & marketing services stocks, our full report is free.

Best Q3: Taboola

Often appearing as those "You May Also Like" or "Recommended For You" boxes at the bottom of news articles, Taboola operates a digital platform that recommends personalized content to users across publisher websites, helping both publishers monetize their sites and advertisers reach target audiences.

Taboola reported revenues of $496.8 million, up 14.7% year on year, outperforming analysts’ expectations by 6.3%. The business had a stunning quarter with a beat of analysts’ EPS and revenue estimates.

The market seems happy with the results as the stock is up 31.8% since reporting. It currently trades at $4.39.

Slowest Q3: Clear Channel Outdoor

With thousands of digital and traditional displays lighting up America's highways, city streets, and airports, Clear Channel Outdoor operates billboards, street furniture, and airport displays, connecting advertisers with millions of consumers across the US.

Clear Channel Outdoor reported revenues of $405.6 million, up 8.1% year on year, exceeding analysts’ expectations by 0.9%. Still, it was a mixed quarter as it posted a significant miss of analysts’ EPS estimates.

Interestingly, the stock is up 18.4% since the results and currently trades at $2.12.

Read our full analysis of Clear Channel Outdoor’s results here.

QuinStreet

Founded during the dot-com era in 1999 and specializing in high-intent consumer traffic, QuinStreet operates digital performance marketplaces that connect clients in financial and home services with consumers actively searching for their products.

QuinStreet reported revenues of $285.9 million, up 2.4% year on year. This result topped analysts’ expectations by 2.1%. More broadly, it was a satisfactory quarter as it also produced a solid beat of analysts’ revenue estimates but revenue guidance for next quarter meeting analysts’ expectations.

The stock is up 5% since reporting and currently trades at $14.57.

Read our full, actionable report on QuinStreet here, it’s free for active Edge members.

Magnite

Born from the 2020 merger of Rubicon Project and Telaria, Magnite operates the world's largest independent sell-side advertising platform that automates the buying and selling of digital advertising inventory across all channels and formats.

Magnite reported revenues of $179.5 million, up 10.8% year on year. This print beat analysts’ expectations by 0.9%. Overall, it was a satisfactory quarter as it also recorded a narrow beat of analysts’ revenue estimates.

The stock is down 6% since reporting and currently trades at $16.79.

Read our full, actionable report on Magnite here, it’s free for active Edge members.

As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the advertising & marketing services industry, including Omnicom Group and its peers.

The sector is on the precipice of both disruption and growth as AI, programmatic advertising, and data-driven marketing reshape how things are done. For example, the advent of the Internet broadly and programmatic advertising specifically means that brand building is not a relationship business anymore but instead one based on data and technology, which could hurt traditional ad agencies. On the other hand, the companies in the sector that beef up their tech chops by automating the buying of ad inventory or facilitating omnichannel marketing, for example, stand to benefit. With or without advances in digitization and AI, the sector is still highly levered to the macro, and economic uncertainty may lead to fluctuating ad spend, particularly in cyclical industries.

The 5 advertising & marketing services stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Omnicom Group

With a vast network of creative agencies that helped craft some of the most memorable ad campaigns in history, Omnicom Group is a strategic holding company that provides advertising, marketing, and communications services to many of the world's largest companies.

Omnicom Group reported revenues of $4.04 billion, up 4% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a beat of analysts’ EPS estimates but organic revenue in line with analysts’ estimates.

"We expect to close the Interpublic acquisition next month, creating the world's leading marketing and sales company. Together, we will emerge with the industry's most talented team and a powerful platform designed to accelerate growth through strategic advantages in data, media, creativity, production, and technology," said John Wren, Chairman and Chief Executive Officer of Omnicom.

Omnicom Group delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 1.3% since reporting and currently trades at $79.70.

Best Q3: Taboola

Often appearing as those "You May Also Like" or "Recommended For You" boxes at the bottom of news articles, Taboola operates a digital platform that recommends personalized content to users across publisher websites, helping both publishers monetize their sites and advertisers reach target audiences.

Taboola reported revenues of $496.8 million, up 14.7% year on year, outperforming analysts’ expectations by 6.3%. The business had a stunning quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.

Taboola achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 31.6% since reporting. It currently trades at $4.38.

Ibotta

Originally launched as a way to make grocery shopping more rewarding for budget-conscious consumers, Ibotta is a mobile shopping app that allows consumers to earn cash back on everyday purchases by completing tasks and submitting receipts.

Ibotta reported revenues of $83.26 million, down 15.6% year on year, exceeding analysts’ expectations by 1.6%. It was a satisfactory quarter as it also posted a beat of analysts’ EPS estimates but revenue guidance for next quarter missing analysts’ expectations.

Ibotta delivered the slowest revenue growth in the group. As expected, the stock is down 31.5% since the results and currently trades at $22.43.

Read our full analysis of Ibotta’s results here.

Magnite

Born from the 2020 merger of Rubicon Project and Telaria, Magnite operates the world's largest independent sell-side advertising platform that automates the buying and selling of digital advertising inventory across all channels and formats.

Magnite reported revenues of $179.5 million, up 10.8% year on year. This print surpassed analysts’ expectations by 0.9%. Overall, it was a satisfactory quarter as it also produced a narrow beat of analysts’ revenue estimates.

The stock is down 8.9% since reporting and currently trades at $16.27.

Read our full, actionable report on Magnite here, it’s free for active Edge members.

QuinStreet

Founded during the dot-com era in 1999 and specializing in high-intent consumer traffic, QuinStreet operates digital performance marketplaces that connect clients in financial and home services with consumers actively searching for their products.

QuinStreet reported revenues of $285.9 million, up 2.4% year on year. This number beat analysts’ expectations by 2.1%. Aside from that, it was a satisfactory quarter as it also produced an impressive beat of analysts’ revenue estimates but revenue guidance for next quarter meeting analysts’ expectations.

The stock is up 5.6% since reporting and currently trades at $14.65.

Read our full, actionable report on QuinStreet here, it’s free for active Edge members.

What Happened?

Shares of content discovery platform Taboola jumped 2.8% in the afternoon session after analyst firm Rosenblatt initiated coverage on the stock with a 'Buy' rating and a $6 price target. 

The price target suggested a potential upside of nearly 50% from its previous closing price. According to the research firm, Taboola's shares had been "mis-characterized as a secular loser from Google AI-search," which resulted in the stock's relatively flat performance over the previous year. This new bullish coverage indicated that investor concerns about competition from AI-driven search innovations may have been overstated, providing a more optimistic outlook for the company's future.

After the initial pop the shares cooled down to $4.17, up 3% from previous close.

What Is The Market Telling Us

Taboola’s shares are somewhat volatile and have had 12 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 7 days ago when the stock dropped 3.3% on the news that a technical sell signal indicated the potential for further declines. 

The downward move appeared to be driven by technical factors. A sell signal was reportedly issued from a recent peak, and the stock had fallen more than 3% since that point, suggesting further declines were possible. This technical pressure was compounded by negative insider sentiment. Over the previous year, key executives had sold a significant amount of shares on the open market, totaling $44.1 million against $16.1 million in shares bought or received.

Taboola is up 11.7% since the beginning of the year, and at $4.17 per share, it is trading close to its 52-week high of $4.18 from December 2025. Investors who bought $1,000 worth of Taboola’s shares 5 years ago would now be looking at an investment worth $347.08.