Magnite's Stock Price Drops Amid Fears of Google Lawsuit and Shift to AI Stocks

Magnite (MGNI) shares dropped 6.79% to $24.16, ending a three-day winning streak, as investors fled to AI stocks amid concerns over its legal battle with Google and the U.S. District Court's ruling on anticompetitive practices in ad tech markets. The company filed a new lawsuit against Google, seeking financial damages, and acknowledged Google as a significant participant in the digital advertising ecosystem, where a significant portion of its revenue comes from.

Magnite Inc. (MGNI) shares dropped 6.79% to $24.16 on September 12, 2025, ending a three-day winning streak. The decline was attributed to investor concerns over the company's ongoing legal battle with Google and the U.S. District Court's ruling on anticompetitive practices in ad tech markets. Magnite has filed a new lawsuit against Google, seeking financial damages, and acknowledges Google's significant role in the digital advertising ecosystem, where a substantial portion of its revenue is generated.

The lawsuit, filed on September 16, 2025, alleges that Google has systematically engaged in anticompetitive conduct that has harmed Magnite over more than a decade. The complaint details Google's exclusionary schemes, including tying arrangements and bid manipulation practices, which have prevented Magnite from competing effectively in the programmatic advertising market. According to the filing, these practices have caused substantial financial harm to Magnite, including workforce reductions and lost revenue opportunities.

The lawsuit seeks treble damages under federal antitrust law, which could potentially reach hundreds of millions of dollars when applied to more than a decade of alleged monopolistic conduct. Magnite must demonstrate both actual damages from lost business opportunities and the causal connection between Google's specific anticompetitive practices and financial harm.

Magnite's CEO, Michael Barrett, stated, "For years, Google undermined our ability to execute on our mission with practices that favored its own business over the health of the open web." The lawsuit seeks comprehensive relief, including monetary damages, structural remedies, and behavioral restrictions to prevent future violations.

Investors are closely monitoring this legal battle, as the outcome could significantly impact Magnite's financial performance and market position. The company's ability to compete in the digital advertising ecosystem and its growth prospects are at stake.