Taboola is the latest in a flurry of companies looking to list on the public markets via a special purpose acquisition company — otherwise known as a SPAC. Taboola seeks to achieve this via a merger with ION Acquisition Corp. (NYSE: IACA), a publicly-traded SPAC.
The merger transaction expects to raise approximately $545 million, $285 million of which should come in as primary and secondary private investment in public equity (PIPE) financing from big bank investors, including Fidelity Management & Research Company LLC, Hedosophia, Baron Capital Group and BlackRock. The merger deal will value Taboola at $2.6 billion.
With the transaction expected to close in Q2 of 2021, investors looking to put their money on the line can use this guide to learn how to buy stocks, including Taboola.
Taboola Financial History
Founded in 2007, Taboola is a world leader in powering recommendations for the open web. The company powers content recommendation widgets across 9,000 websites for big-name publishers like CNBC, The Independent and NBC News, among others. Taboola surpassed 516 million daily active users while working with over 13,000 advertisers.
Taboola portrays solid historical revenue growth, soaring from $63 million in 2015 to approximately $379 million in 2020. The company projects its revenue for 2022 will be approximately $516 million, a consistent upward trend. Prior to announcing the merger transaction, Taboola had raised $160 million and held approximately $240 million in cash and cash equivalents on its balance sheet as of December 31, 2020.
Taboola took a hit in 2020 following the COVID-19 pandemic, but the company says it left the fiscal year 2020 stronger than it entered with a record of sustainably higher profitability. Taboola is looking to invest over $100 million in R&D growth initiatives like e-commerce and AI in fiscal 2021.
Taboola is solving the tremendously difficult technological challenge of predicting what people might be interested in without the intent data that Google has or the personal data that Facebook has — and doing so on a massive scale. Taboola currently stands on 516 million daily active users (more than Twitter and Snapchat combined), makes 1 trillion monthly recommendations and processes 1 petabyte of data daily.
By bringing the user data, AI technology and scale of demand to open web players, Taboola is helping publishers compete with walled garden behemoths like Google, Amazon and Facebook. As a one-of-a-kind recommendations engine, Taboola is poised to capture the highly fragmented $64 billion open web market through exclusive relationships with publishers, product-led growth and direct relationships with more than $10,000 advertisers.
Taboola leverages technology that’s resilient to the future disappearance of 3rd-party cookies. Through its own 1st-party cookie, Taboola can recommend personalized editorial content to its 1st-party identifiers.
With the ability to recommend anything, anywhere, Taboola has numerous paths to accelerate growth. Through device manufacturer partnerships, Taboola can deliver its publisher partner’s news to consumers. And with approximately 500 team members supporting research and development and significant investment into its technology stack, Taboola is poised to be a multibillion-dollar growth engine.
How to Buy Taboola Stock
With so many high-profile IPOs hitting the airwaves each month, it’s natural that you want to own a share of the spoils. Whether you’ve traded the stock market before, you might be surprised at how easy it is to participate in these debuts. While you won’t participate in the dance before the stocks list on the public market, these 4 simple steps should prepare you to participate.
Step 1: Pick a brokerage.
Choosing a brokerage is the first step to taking part in the upcoming Taboola IPO. With numerous platforms competing fiercely, eye-catching promotions and incentives to join are taking center stage. Some brokers promise an additional bonus on your first deposit while others promise to deliver hand-picked stocks for your unique investing goals.
Establishing your goals as an investor will help you choose an online brokerage that best matches your needs. Are you a rookie stock market trader? You’ll want to work with a broker that lets you hone your trading skills with a paper trading account before staking real money. Other key qualities to look for in a brokerage include:
- Commissions and fees
- Account minimums
- Trading platform
- Access to additional markets and international exchanges
- Customer support
Check our list of the best brokers to find an investing partner to match your needs.
Step 2: Decide how many shares you want.
Once you have your brokerage account up and running, it’s time to decide how many shares of Taboola stock you want to own. Consider your risk appetite and overall investing outlook to ensure you only put in money you can afford to lose.
The stock market largely transacts on shares to buy rather than dollar value, though many brokerages now allow for fractional share ownership. To determine the number of shares you’ll own, take the dollar amount you want to invest and divide it by the anticipated or current IPO price of the stock. For instance, if Taboola is targeting a $10 share price, you’ll own 100 shares if you invest $1,000.
Step 3: Choose your order type.
The stock market is often characterized by constantly fluctuating prices, so you must leverage order types to specify how you’d like to acquire your target shares. Different order types carry vastly different outcomes, so you must understand their distinctions. Here are some of the most common stock order types:
- Market order: A market order lets you buy a stock at the best available price. While this order type executes immediately, the price at which it executes isn’t guaranteed. A stock’s last traded price isn’t necessarily the price at which your market order will execute.
- Limit order: This is an order to buy a stock at a specific price or better. Limit orders don’t guarantee execution, but they can ensure you don’t pay more than a predetermined price for a stock.
- Stop order: A stop order instructs your broker to buy a stock once the price of a stock hits a specific price. Once the stock hits this price (stop price), a stop order becomes a market order. A buy stop order is entered at a stop price that’s above the prevailing market price.
- Stop-limit order: A stop-limit order doubles up as a stop order and limit order. Once the stop price is attained, a stop-limit order becomes a limit order that’s executed at a specified price.
Besides using various order types, you can specify other conditions that affect an order’s time in effect, price or volume constraints. Be sure to understand the various ways you can control an order before placing a trade.
Step 4: Execute your trade.
After choosing your order, you’ll need to submit it to your broker for execution. Confirm that you’ve provided the current instructions since your broker won’t take liability for any errors on your end. You can now submit your order and let your broker fill it. Market orders will fill almost instantly unless placed outside the normal trading hours.
Market conditions such as the level of volatility and volume of shares being traded may affect the time it takes to fill your order.
Disrupting Open Web Recommendation
Taboola leads the open web recommendation space and is well poised to battle it out with the walled gardens — Google for search, Facebook for social and Amazon for e-commerce. The merger with a global technology leader, a combination of long-term partnerships and vast global reach lets Taboola provide significant value to its partners while achieving tremendous growth. The company should soon command the open web — a $64 billion advertising market.