TBLA Should I Buy
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Taboola.com Ltd. (TBLA) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company has shown solid financial growth in net income and EPS, the technical indicators are bearish, insider selling is significantly high, and there are no strong proprietary trading signals. The stock's pre-market price movement and options data suggest limited short-term upside. Given the investor's preference for long-term investments, it would be prudent to wait for stronger bullish signals or a more favorable entry point.
The technical indicators are bearish. The MACD is below 0 and negatively contracting, the RSI is neutral at 29.539, and the moving averages indicate a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading near its support level (S1: 2.939), with resistance levels at R1: 3.424 and R2: 3.574. The stock has a 70% chance of declining slightly (-0.02%) in the next day and -1.41% in the next week.
Rosenblatt's Buy rating and $6 price target highlight confidence in Taboola's AI-driven growth strategy and its ability to mitigate risks from Google AI.
Q4 2025 financials show strong YoY growth in net income (+51.27%) and EPS (+60%).
Insiders are selling heavily, with a 25161.55% increase in selling activity over the last month.
Gross margin dropped by -6.99% YoY in Q4 2025, indicating potential cost pressures.
Revenue for Q4 2025 fell short of expectations by $15.5 million, reflecting increased market competition.
In Q4 2025, Taboola reported a 6.37% YoY increase in revenue to $522.3 million. Net income rose significantly by 51.27% YoY to $50.14 million, and EPS increased by 60% YoY to $0.17. However, gross margin declined by -6.99% YoY to 33.64%. While the company is growing its profitability, the revenue miss highlights challenges in maintaining top-line growth.
Rosenblatt initiated coverage with a Buy rating and a $6 price target, citing Taboola's strong AI adoption and a 9,000-publisher footprint that reduces dependency on Google AI. The firm believes the stock is undervalued and expects a re-rating as confidence in the company's growth strategy increases.
