Ramp It Up Or Tap The Brakes, This Stock is For You

A small-cap ad-tech name with privacy cred and a turnaround rating upgrade is trying to climb back into favor.

Digital marketing has had a rough couple of years, but this name is positioning itself as a bridge between advertisers, publishers, and consumer privacy.

After a slump, the stock looks cheap, if management can prove growth is more than incremental.

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What’s Changing: From Forgettable To Interesting Again

LiveRamp (NYSE: RAMP) has spent most of 2025 out of the spotlight. Shares are down double digits year-to-date, and ARR growth has been underwhelming. Yet beneath the surface, some things are shifting:

  • Upgraded Ratings: Zacks bumped the stock to a Strong Buy after steady upward revisions in earnings estimates. That matters, as estimate momentum tends to front-run price moves.

  • Target Potential: Street targets span $25 to $50, with an average implying more than 50% upside from current levels. That’s not typical for a company many investors have left for dead.

  • Earnings Visibility: Next fiscal year estimates call for 8–9% revenue growth and over 30% EPS growth, reflecting cost discipline and improving leverage.

Action Item
A starter position near $26–$27 makes sense for you if you’re comfortable with volatility. Use a stop in the low-$23s to cap downside if the growth story doesn’t show up in prints.

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The Business: A Data Collaboration Play In A Privacy World

LiveRamp helps marketers stitch together consumer data across platforms while remaining compliant with privacy rules. That makes it a rare tool for navigating a cookie-less, regulation-heavy environment. Key features:

  • Data Collaboration Platform: Unifies customer data across silos, enabling better targeting and measurement.

  • Breadth Of Clients: Financial services, CPG, retail, healthcare, travel, you name it, RAMP has a seat at the table.

  • Identity & Privacy Edge: Its solutions are positioned as a compliant way to unlock customer insights in a world where regulators and consumers demand protection.

This makes LiveRamp a niche operator, but one with a clear need as cookies disappear and advertisers scramble for alternatives.

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Numbers: Underwhelming But Stabilizing

The bear case has long centered on slow growth. Three-year revenue CAGR sits around 11.5%, which is okay, but not exciting compared to SaaS peers. ARR growth has cooled to single digits, highlighting competitive friction.

But management is tightening the screws:

  • EPS Turnaround: Analysts expect EPS to climb 34% next year, driven by margin expansion rather than topline heroics.

  • ARR At $500M+: Not thrilling, but provides a foundation. If new collaborations stick, double-digit ARR growth could reappear.

  • Valuation: At ~2.1x forward sales, RAMP is priced as a no-growth story. Any re-acceleration could drive multiple expansion.

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Catalysts To Watch

  • Earnings Beats: If the next two quarters show ARR re-acceleration, sentiment could flip quickly.

  • Partnership Wins: New marquee customers or agency integrations prove relevance.

  • M&A Optionality: With a $1.7B market cap, RAMP is small enough to be a bolt-on target for a larger ad-tech or cloud data player.

  • Regulation Tailwinds: The tougher privacy gets, the more valuable compliant solutions like RAMP become.

Action Item

Look for ARR growth above 10% y/y in Q3 as a signal to add. Below that, keep it small and opportunistic.

The Bear Case: Why This Could Stay Dead Money

  • Soft Demand: Competition from walled gardens (Google, Meta, Amazon) limits how much budget flows to independent tools.

  • Sluggish Growth: ARR sub-10% growth is not enough to justify even 2x sales in a SaaS-heavy world.

  • Execution History: Management has promised acceleration before; patience is thin.

  • High Multiple On Earnings: P/E north of 120x makes it look pricey despite low growth, unless EPS ramps fast.

Risk management is critical here, as this is not a core holding until the revenue profile improves.

What Could Go Right

  • Privacy Shifts Accelerate: More restrictions force marketers toward neutral, compliant platforms.

  • Enterprise Wins: Big-name logos with multi-year contracts would boost ARR and credibility.

  • Buyout Bid: Private equity or a larger martech player could scoop RAMP at a premium, given its data assets and sticky client relationships.

Final Word: A Speculative Re-Rating Candidate

RAMP sits at the awkward intersection of potential and fatigue. The stock’s multiple looks stretched on today’s numbers, but the business could re-rate sharply higher if ARR accelerates and EPS leverage shows up. With targets calling for up to 80% upside, the asymmetry is appealing, but patience is mandatory.

Action Recap

Starter near $26–$27; stop in low $23s
Add if ARR growth >10% y/y and EPS beats in Q3/Q4
Near-term swing target $32–$35; longer-term potential $40–$45 if execution sticks
Speculative position only; treat as a satellite, not a core holding

That's our coverage for today; thanks for reading! Reply to this email with feedback or any tech stocks you want me to check out.

Best Regards,
—Noah Zelvis
Tech Stock Insider