Criteo Shares Plunge 6.32% Amid Earnings Beat

Criteo (CRTO) shares plunged 6.32% intraday, marking the lowest level since January 2024, with a cumulative decline of 8.31% over the past two days.

The strategy of buying CRTO shares after they reached a recent low and holding for one week resulted in poor performance over the past five years. The strategy yielded an excess return of -57.18% and a CAGR of -0.26%, significantly underperforming the benchmark return of 56.54%. Additionally, the strategy had a high maximum drawdown of -48.64% and a Sharpe ratio of -0.01, indicating significant risk and negative returns.

Criteo's recent stock price fluctuations can be attributed to several key developments. The company has expanded its global partnership with Dentsu, aiming to enhance commerce and performance media campaigns. This strategic collaboration is expected to bolster Criteo's advertising and marketing efforts on a global scale, potentially driving future growth and investor confidence.

Additionally, Criteo's Q1 2025 earnings report, released on May 2, 2025, showed strong financial performance. The company reported an earnings per share (EPS) of $1.10, surpassing the consensus estimate of $0.77 by $0.33. This significant beat, coupled with a 3.9% increase in quarterly revenue, indicates robust operational efficiency and market demand for Criteo's services. These positive financial results are likely to have a favorable impact on the company's stock price in the long term.