Technology Advertising: Criteo collapses on the stock market after Google's...

Advertising: Criteo collapses on the stock market after Google's announcement on third-party cookies

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Posted on Jan. 15, 2020, 12:25 p.m.

Criteo is at the bottom of Wall Street. This Tuesday, the action of the French group collapsed by almost 16%, dropping its market capitalization below the symbolic bar of a billion dollars (to 980 million).

A first for Criteo since its IPO in 2013; tricolor society is now reaching its historic low point at Nasdaq. Since its record level reached in mid-2017, the stock has dropped more than 70%.

Why did the group title unscrew so much on Tuesday? Financial markets reacted strongly
at the Google announcement

    who said he plans to clear his Chrome browser of third-party cookies (small files that store the user's browsing data) within two years. And the latter is used today for 60% of online visits worldwide.

(c) Bloomberg screenshot

A big blow for Criteo which has made a name for itself as a specialist in “dynamic retargeting” (the technique allowing to send targeted ads to internet users). The reason ? These third-party cookies are the flagship ingredient of this recipe, which has long been successful. It is thanks to them that the group tracks a surfer when he visits a commercial site without buying anything, then offers him advertisements for similar products.

A movement initiated by Apple on Safari

Just over two years ago, Criteo had a tough time on Wall Street. For similar reasons. At the end of 2017, Apple decided to drastically reduce the use of cookies via Safari, its home browser. At the time, Criteo's value had fallen by a quarter of its value in two trading sessions.

Last June, Firefox made the same decision. This means that the three main world browsers (Chrome, Safari and Firefox) are today aligned on the question of third-party cookies.

As a result, Criteo must imperatively accelerate the redesign of its model. A movement that started two years ago – via advertising on mobile applications or online business marketing – but it takes time.

Years of transition

The last two years have
thus served as a transition,

    according to the group. The fact remains that despite this change of course, the group has managed to maintain its turnover and profitability for the time being.

This is not enough to reassure Wall Street. Arriving at the helm last October – after the founder of Criteo
Jean-Baptiste Rudelle has left the general management

    -, the New Zealander Megan Clarken will be responsible for further accelerating the redeployment of the company. " Criteo has two years to continue this impulse / transition “Writes broker SunTrust Robinson Humphrey in a note released on Tuesday. The countdown has begun.

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