Criteo: No Light At The End Of The Tunnel As Top Line Deteriorates (Rating Downgrade)

Criteo (CRTO) has been downgraded to a sell rating following a disappointing Q2 performance and a significant reduction in guidance, indicating it may be a value trap. The company now anticipates a 10% to 12% decline in contribution ex-TAC, with both its Retail Media and Performance Media segments struggling. Although Criteo announced a new partnership with OpenAI, its ongoing execution issues and client churn are expected to overshadow any potential benefits from AI.