Google Is Eliminating Cookies, But Investors in The Trade Desk and Magnite Shouldn't Worry
Early last week, Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) subsidiary Google made an announcement that stunned the digital advertising world. The company said that it was planning to eliminate ad-tracking cookies (something that's been in the works for more than a year), but it then went even further.
In a blog post on Google's website, product management head David Temkin said, "Today, we're making explicit that once third-party cookies are phased out, we will not build alternate identifiers to track individuals as they browse across the web." This revelation sent the stocks of digital advertising icons The Trade Desk (NASDAQ: TTD) and Magnite (NASDAQ: MGNI) plummeting. They ended the week down 18% and 23%, respectively, in the wake of the announcement.
While this knee-jerk reaction is certainly understandable, Google's move is much less ominous than it appears at first glance.
Source Fool.com
