What Happened?
Shares of content discovery platform Taboola (NASDAQ:TBLA) jumped 2.8% in the afternoon session after analyst firm Rosenblatt initiated coverage on the stock with a 'Buy' rating and a $6 price target.
The price target suggested a potential upside of nearly 50% from its previous closing price. According to the research firm, Taboola's shares had been "mis-characterized as a secular loser from Google AI-search," which resulted in the stock's relatively flat performance over the previous year. This new bullish coverage indicated that investor concerns about competition from AI-driven search innovations may have been overstated, providing a more optimistic outlook for the company's future.
After the initial pop the shares cooled down to $4.17, up 3% from previous close.
Is now the time to buy Taboola? Access our full analysis report here.
What Is The Market Telling Us
Taboola’s shares are somewhat volatile and have had 12 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 7 days ago when the stock dropped 3.3% on the news that a technical sell signal indicated the potential for further declines.
The downward move appeared to be driven by technical factors. A sell signal was reportedly issued from a recent peak, and the stock had fallen more than 3% since that point, suggesting further declines were possible. This technical pressure was compounded by negative insider sentiment. Over the previous year, key executives had sold a significant amount of shares on the open market, totaling $44.1 million against $16.1 million in shares bought or received.
Taboola is up 11.7% since the beginning of the year, and at $4.17 per share, it is trading close to its 52-week high of $4.18 from December 2025. Investors who bought $1,000 worth of Taboola’s shares 5 years ago would now be looking at an investment worth $347.08.
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