Shares of advertising technology (adtech) company (NASDAQ: CDLX) absolutely skyrocketed on Friday after reporting its financial results for the fourth quarter of 2023. As of 10:15 a.m. ET, Cardlytics stock is up 51% and up more than 240% over the past year.

For Cardlytics, I believe the market was overly pessimistic about its long-term prospects. For perspective, the stock traded at book value earlier this year -- highly unusual for a tech stock. And prior to the Q4 earnings report yesterday afternoon, it traded at just 1 times its trailing sales, which is quite inexpensive.

When a tech stock trades this cheap, it indicates that the market doesn't believe in the company's long-term prospects. But investors are rethinking Cardlytics today. The company generated Q4 revenue of $89 million, which was at the high end of its guidance and capped off a record year.

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Source Fool.com