Why Magnite (MGNI) Shares Are Trading Lower Today

What Happened?

Shares of digital advertising platform Magnite (NASDAQ:MGNI) fell 5.2% in the morning session after 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.

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 4% on the news that markets pulled back, reversing early gains, as investor sentiment remained cautious despite a softer-than-expected inflation reading.

Stocks rose in the morning session after an unexpected drop in the Producer Price Index (PPI) for August signaled easing inflation and raised expectations for a potential Federal Reserve interest rate cut. The U.S. Bureau of Labor Statistics reported that the PPI, which measures wholesale prices, edged down 0.1% last month, contrary to analyst expectations for a 0.3% rise. This data gives the Federal Reserve more flexibility to consider lowering interest rates to stimulate the economy.

Magnite is up 38.5% since the beginning of the year, but at $22.30 per share, it is still trading 15.9% below 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 $3,477.

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