MediaAlpha, Inc. (MAX)
Chart Events
Performance Outlook
| Previous Close | 38.67 |
| Open | 39.13 |
| Bid | 39.09 x 1200 |
| Ask | 41.49 x 1200 |
| Day's Range | 38.69 - 41.49 |
| 52 Week Range | 21.62 - 70.33 |
| Volume | 73,308 |
| Avg. Volume | 314,148 |
| Market Cap | 2.419B |
| Beta (5Y Monthly) | N/A |
| PE Ratio (TTM) | N/A |
| EPS (TTM) | N/A |
| Earnings Date | N/A |
| Forward Dividend & Yield | N/A (N/A) |
| Ex-Dividend Date | N/A |
| 1y Target Est | N/A |
- InvestorPlace
Everyone’s Buying Insurance Online… Here’s a Potential 10X Investment in this Booming Market
As technology takes over the world, it is leaving no stone unturned. Not even the $2 TRILLION insurance market. The insurance market has been seemingly allergic to change and technological disruption for decades. Despite the fact that we buy pretty much every other product in the world these days directly from a supplier through a computer or phone, we continue to buy car, house, and life insurance mostly through intermediary agents on phone calls or in-person meetings.InvestorPlace - Stock Market News, Stock Advice & Trading Tips How old school… This won’t last long. The traditional model of insurance selling is capital-intensive, slow, and inefficient. Basically, it sucks. Things that suck don’t last. Eventually, they get replaced. In the insurance industry, this replacement is happening right now. Direct-to-consumer carriers that skip intermediary agents – like Progressive and GEICO – are taking over the insurance industry. These DTC carriers accounted for just 23% of industry premiums in 2013 – that share ballooned to 30% by 2018. In the auto world, DTC carriers Progressive and GEICO accounted for nearly 85% of the premium growth in that industry in 2019. So… the insurance world is pivoting to a direct-to-consumer model. At the same time, the whole industry is being digitized, because consumers are warming up to the idea of buying insurance online. A decade ago, a Comscore survey found that only 35% of folks would consider buying an auto insurance policy online. But times have changed, and a 2020 J.D. Power survey found that, today, 90% of consumers are open to buying insurance online. The insurance industry is finally getting its long overdue technological makeover. The implications here are enormous. As stated earlier, insurance carriers write nearly $2 trillion worth of premiums every single year. If all those premiums are going to be sold online going forward, then insurance carriers need to rehaul their selling infrastructure, invest in technology platforms, and rethink their marketing strategies. Pretty much everything about this multi-trillion-dollar ecosystem has to change. Where there’s change, there’s opportunity… Today, we will tell you about one of the best opportunities in this multi-trillion-dollar e-insurance revolution. It’s a company that is providing data-driven online marketing solutions for insurance carriers in this new world – and which, in the long run, could turn into a must-have tool for every insurance provider in America. The Data “Brain” Behind the Online Insurance Revolution One of the big things that has to change over the next few years in the insurance industry is how insurance providers market to and acquire customers. Traditionally, in a brick-and-mortar retail process, insurance companies relied on linear advertising and cold-calling. That’s not going to cut it in the e-insurance world of tomorrow. With consumers increasingly researching, looking for, and buying insurance policies online, insurance providers need to adopt digital marketing strategies that meet prospective customers where they are – in the online world. And that’s why we are so bullish on a freshly public company called MediaAlpha (NYSE:MAX). MediaAlpha provides data-driven online marketing solutions for insurance carriers through a centralized technology platform. The company went public in late 2020, and is currently valued at $2.5 billion. The process here is very straight-forward. A consumer goes online to research and look for insurance policies. In that process, the consumer fills out a ton of forms on various insurance-related research websites, which produce a ton of customer-specific data. Those websites sell that data to MediaAlpha, which pops that data into its data-science technology platform. MediaAlpha then sells that technology platform to insurance carriers, who use it to smartly target and bid on prospective clients. By leveraging data to help insurance carriers market to, acquire, and convert high-value customers, MediaAlpha helps those carriers maximize customer lifetime value (LTV) and minimize customer acquisition costs (CAC), for a big boost to net profits. Accordingly, this is the future. Data-driven online marketing technology is the future of insurance customer acquisition. To be sure, MediaAlpha is far from the only company providing these solutions. But the company does stand out from the pack in one very important way: Size. This is a supply-driven industry. The more supply, or partnerships, that a platform has, the more data it will have to access to – which will lead to better targeting capabilities, wider reach, and smarter pricing algorithms. All those things will contribute to better LTV/CAC ratios for insurance carriers, which will lead to more demand. In this industry, supply is everything. And when it comes to supply, MediaAlpha is dominating. The company already has 380 insurance supply partners who are providing info on 370 million high-intent insurance customers annually. That’s an unmatched supply network in this space… which gives MediaAlpha an unmatched ability to drive performance metrics for insurance carriers… which has allowed MediaAlpha to land 15 of the top 20 auto insurance providers as customers. Over the next several years, MediaAlpha should be able to build on its supply advantages, since they create durable technology and networking advantages that will be very hard to overcome. As that happens, MediaAlpha will only widen its lead as the “top dog” in this space. And that’s great news, because digital marketing dollars in the insurance industry are expected to rise by more than 180% over the next five years. So… with MediaAlpha… you have a company that is the head-and-shoulders leader in a booming sub-market of a burgeoning megatrend… which, of course, is why long-term investors should put MediaAlpha stock on their buy radars today. On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article. The New Daily 10X Stock Report: 98.7% Accuracy — Gains Up to 466.78%. InvestorPlace’s brand-new and highly controversial newsletter… is rocking the industry… delivering one breakthrough stock recommendation each and every trading day… delivered straight to your inbox. 98.7% Accuracy to Date — Gains Up to 466.78%. Now for a limited time… you can get in for just $19. Click here to find out how. The post Everyoneâs Buying Insurance Online… Hereâs a Potential 10X Investment in this Booming Market appeared first on InvestorPlace.
- Benzinga
MediaAlpha Shares Fall After Certain Stockholders Offload $322M Stake
Advertising technology company MediaAlpha Inc (NYSE: MAX) priced 7 million shares by certain selling stockholders at $46 per share, valued at $322 million. The offer price signifies a 1.5% discount to the Thursday closing price of $46.7 and is expected to close on March 23, 2021. The selling stockholders have also granted the underwriters a 30-day option to purchase up to an additional 1.05 million shares. MediaAlpha did not offer any shares and would not receive any proceeds from the offering. The company's revenue rose 51% to $190.2 million in the fourth quarter of FY20. Transaction value rose 51% to $256.9 million. Property & Casualty revenue grew 97% to $123 million. MAX shares have gained 35.95% in the last quarter. Price action: MAX shares traded lower by 7.66% at $43.13 on the last check Friday. See more from BenzingaClick here for options trades from BenzingaTAOP To Acquire Taoping New Media For MWhatsApp Ropes In Amazon Payments Veteran For Indian Payments Business: Reuters© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
- Simply Wall St.
Calculating The Intrinsic Value Of MediaAlpha, Inc. (NYSE:MAX)
How far off is MediaAlpha, Inc. ( NYSE:MAX ) from its intrinsic value? Using the most recent financial data, we'll take...
