Google Delays Cookie Phaseout; These Digital Ad Stocks Soar

Google on Thursday delayed its phaseout of third-party internet tracking cookies used by the advertising industry. Trade Desk stock jumped on the reprieve, along with Criteo (CRTO), LiveRamp Holdings (RAMP), PubMatic (PUBM) and Magnite (MGNI).


Google parent Alphabet (GOOGL) edged higher, in a buy zone.

Google had planned to end support for third-party cookies in its Chrome web browser in early 2022. In a blog post, Google said it would delay its phaseout of third-party cookies until mid-to-late 2023.

Trade Desk (TTD), LiveRamp and others have been working on alternatives to third-party cookies. Google also has been working on ways to track consumers that provide better privacy.

“While there’s considerable progress with this initiative, it’s become clear that more time is needed across the ecosystem to get this right,” Google said in the blog.

Google Stock: Cookie Delay Comes After Amazon Rift

Google’s move comes shortly after (AMZN) reportedly blocked Google’s new tracking system, called Federated Learning of Cohorts, or FLoC, from gathering data at its websites.

“Companies have been working individually and collectively to create alternative identifiers to ensure performance following the loss of cookies,” RBC Capital analyst Matthew Swanson said in a report. “These headwinds to the launch Google’s FLoC system will give them more time before the loss of cookies and also improve the maturity of their identifiers relative to FLoC when it is launched.”

At Truist Securities, analyst Youssef Squali said Google stock needs time to win over regulators and the ad industry.

“We expect Google to remain under pressure from regulators on the one hand and from advertisers on the other regarding the need for an effective replacement for third-party cookies, which satisfies all stakeholders,” Squali said in a report. “This is positive news for companies like The Trade Desk, which is building its own ad currency as an alternative to cookies (using email sign-ins).”

Digital Advertising Stocks Jump

Trade Desk stock jumped 16% to close at 75.88 on the stock market today. Criteo stock popped 12.3% to 43.51.

LiveRamp stock advanced 6.4% to 47.75. PubMatic stock leapt 13% to 40.48. Magnite stock popped 8.2% to 35.42.

Google stock edged up 0.3% to 2,450. Google stock has a flat base buy point of 2,431.48. A 5% buy zone extends to 2,553.05.

Apple (AAPL) recently required consumers to opt in for ad tracking on all mobile apps.

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IBD offers a broad range of growth stock lists, such as Leaderboard. Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.

Follow Reinhardt Krause on Twitter @reinhardtk_tech   for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.


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