Choice Equities' Mitchell Scott provides update on $CROX thesis and thoughts on Magnite $MGNI

Sep 22, 2024

Mitchell Scott, Founder and Portfolio Manager at Choice Equities Capital Management, shares insights on Crocs, Inc. and Magnite. He updates his investment thesis on $CROX, discussing its transformation from a fad to a sustainable brand, alongside strategic partnerships and the impact of the HeyDude acquisition. Mitchell also explores Magnite’s role in digital advertising, highlighting its partnerships with Netflix and Disney, and the challenges in CTV ad personalization. His thoughts on both companies reveal potential opportunities for savvy investors.

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Episode notes

Intro

00:00 • 3min

Crocs: From Fad to Fashion Staple

03:10 • 17min

Profitability and Growth Potential of Crocs

20:06 • 3min

Capital Strategy Insights

22:40 • 4min

Magnite's Role in Digital Advertising

26:50 • 21min

Revolutionizing Streaming Ads

47:53 • 4min

Contrasting Perspectives on Magnite's Stock Performance

51:35 • 3min

Antitrust Insights: Google's Ad Tech Challenges

54:21 • 6min

Mitchell Scott, Founder and Portfolio Manager at Choice Equities Capital Management, joined the podcast for the second time to provide an update on his Crocs, Inc. (NASDAQ: CROX) thesis and Mitchell's thoughts on Magnite $MGNI.

For more information about Choice Equities Capital Management, please visit: https://choice-equities.com/

First appearance on $CROX: https://www.youtube.com/watch?v=hzYLXDJZIaE

Podcast on $MGNI with Dan Day: https://www.youtube.com/watch?v=we2o8Jw7Hno

Ryan O'Connor's piece on $MGNI: https://www.crossroadscap.io/documents/trust-busting-update

Chapters:

[0:00] Introduction + Episode sponsor: Daloopa

[1:36] Update on $CROX thesis

[4:22] How has Mitchell's views on whether $CROX is a fad changed (or not)

[7:26] Crocs' partnerships driving the brand

[10:05] Macro consumer, consumer weakness, anything of concern for $CROX / margins

[15:05] HeyDude acquisition

[21:00] What does Mitchell see that makes $CROX an alpha opportunity

[22:46] $CROX capital allocation moving forward / final thoughts on $CROX

[26:56] What is Magnite and why are value-oriented event investors on the small-cap side talking about to this company?

[30:45] What does Mitchell see that makes $MGNI an alpha opportunity

[35:06] $MGNI's Netflix and Disney deals

[38:17] Big customer wins squeeze take rates down for $MGNI?

[44:39] Why isn't $MGNI growing faster?

[47:53] Key to unlocking personalized ads on CTV streaming, is $MGNI key to this?

[52:19] $MGNI bear case / insider selling

[54:21] Google DOJ anti-trust case and how it affects $MGNI

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