PubMatic (NASDAQ: PUBM) and its programmatic advertising platform helps publishers and app developers maximize the revenue they generate from selling ad space. The company offers a valuable service for its publisher customers, freeing them from having to sell ad space directly. And for ad buyers, including demand side platforms, advertisers, and agencies, PubMatic offers a broad set of ad inventory from roughly 1,600 publishers spanning a wide array of content verticals.

Up until recently, PubMatic was growing at a brisk pace. But the advertising business ebbs and flows with the state of the global economy. When economic uncertainty ramps up, some advertisers tighten their belts and slow down spending. For PubMatic, which takes a cut of the revenue generated for publishers, a slowdown in advertising activity will hit the top and bottom lines.

PubMatic expects its revenue in the fourth quarter to be approximately unchanged compared to the same period last year, a stark change from the double-digit growth the company enjoyed throughout the pandemic. While a flatlining of revenue may scare some investors away, there are two good reasons to buy PubMatic stock.

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Source Fool.com