Magnite Stock Tanked 25% Last Quarter, but This Fund Still Bought Up $3 Million More in Shares

On February 17, 2026, Grizzlyrock Capital disclosed in a new SEC filing that it increased its position in Magnite (NASDAQ:MGNI) by 181,000 shares, with the estimated transaction value at $3.00 million based on quarterly average pricing.

What happened

According to a recent SEC filing, Grizzlyrock Capital added 181,000 shares of Magnite during the fourth quarter of 2025. The estimated transaction value, based on average closing prices for the quarter, was $3.00 million. The quarter-end value of the position increased by $768,101, a figure that includes both the impact of additional shares and any change in stock price. The fund reported holding 571,906 shares at year-end.

What else to know

• The position represents 6.95% of Grizzlyrock Capital’s 13F reportable assets under management as of December 31, 2025.
• Top holdings after the filing:
  • NASDAQ: GSM: $18.91 million (14.2% of AUM)
  • NYSE: GEL: $9.83 million (7.4% of AUM)
  • NASDAQ: EEFT: $9.61 million (7.2% of AUM)
  • NASDAQ: MGNI: $9.28 million (6.9% of AUM)
  • NYSE: AMN: $8.76 million (6.6% of AUM)
• As of February 17, 2026, MGNI shares were priced at $11.57, down 40.33% over the past year and underperforming the S&P 500 by 54.07 percentage points.

Company overview

Company snapshot

• Magnite provides a sell-side advertising platform that enables publishers to manage and monetize digital advertising inventory across connected TV (CTV), websites, and digital media properties.
• The company generates revenue primarily by facilitating programmatic ad transactions, charging fees to publishers and buyers for access to its technology and marketplace solutions.
• Main customers include digital publishers, CTV channel owners, advertisers, agencies, and demand-side platforms seeking to optimize digital advertising spend and inventory yield.

Magnite, Inc. is a leading independent sell-side advertising platform specializing in digital and connected TV inventory monetization. The company leverages a robust technology stack to connect digital publishers with advertisers, providing scale and efficiency in programmatic ad transactions. With a focus on innovation and a diversified customer base, Magnite positions itself as a key enabler in the evolving digital advertising ecosystem.

What this transaction means for investors

This move shows conviction when sentiment is washed out. Magnite shares fell 25% last quarter and were down more than 40% for the year as of mid-February, badly trailing the S&P 500. Adding during that kind of drawdown is not a momentum trade. Instead, it seems like a view that fundamentals are inflecting faster than the stock price suggests.

The latest results support that argument. Fourth quarter revenue rose 6% to $205 million, while Contribution ex TAC (gross profit plus cost of revenue, excluding traffic acquisition cost) increased 8% and 16%, excluding political spend. CTV was the standout, with Contribution ex TAC up 20% year over year and now representing 45% of the full year total. Management also authorized a new $200 million share repurchase program and expects at least 11% Contribution ex TAC growth in 2026.

Within a portfolio that already leans into cyclical and special situation names, this nearly 7% position is a meaningful bet on digital ad recovery and CTV share gains. Ultimately, if CTV keeps compounding and margins stay above 35%, as expected, today’s depressed multiple may not last.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Euronet Worldwide. The Motley Fool recommends Magnite. The Motley Fool has a disclosure policy.