What Happened?

Shares of digital advertising platform Magnite (NASDAQ: MGNI) fell 3.6% in the morning session after concerns mounted across the digital advertising sector as a major antitrust trial against Google's ad business began, sending ripples through the industry. 

The U.S. Justice Department's trial, which kicked off in a Virginia federal court, centered on allegations of Google's illegal monopoly and abusive tactics in digital advertising. This significant legal challenge against the industry's largest player created broad uncertainty for other companies in the ad-tech space like Magnite. Investors appeared nervous about the potential for a major shake-up that could reshape the entire market.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Magnite? Access our full analysis report here, it’s free.

What Is The Market Telling Us

Magnite’s shares are extremely volatile and have had 33 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 6 days ago when the stock dropped 5.2% on the news that the company announced it had filed a lawsuit against Google for alleged anticompetitive practices. 

The lawsuit seeks financial damages, citing an April 2025 U.S. District Court ruling which found Google had willfully engaged in anticompetitive acts to maintain a monopoly in the ad exchange and server markets. Magnite’s complaint alleges that Google's exclusionary scheme locked publishers into its ad server and favored its own exchange. 

According to the company, this conduct deprived Magnite and other independent players of the opportunity to compete fairly, harming their businesses. The legal battle against a tech giant introduces significant uncertainty and potential costs, which appeared to weigh on investor sentiment.

Magnite is up 52% since the beginning of the year, and at $24.47 per share, it is trading close to its 52-week high of $26.52 from August 2025. Investors who bought $1,000 worth of Magnite’s shares 5 years ago would now be looking at an investment worth $3,776.

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