Is Viant Technology (DSP) a Buy After a 7.2% Surge? A Deep Dive into Earnings, Tech, and Industry Trends

The recent 7.2% surge in Viant Technology (DSP) has sparked renewed interest in the stock, driven by a combination of strong earnings expectations, industry tailwinds, and a surge in trading volume. But is this momentum sustainable? Let's break down the numbers, technical signals, and broader market dynamics to determine whether this is a compelling short-to-mid-term opportunity.

Earnings and Revenue Growth: A Foundation for Optimism

Viant's upcoming quarter is shaping up to be a key test for its stock. Analysts project EPS of $0.10, a 25% year-over-year increase, and revenue of $77.8 million, up 87.2% from the same period last year. These figures underscore the company's ability to capitalize on the explosive growth of connected TV (CTV), digital-out-of-home (DOOH), and streaming audio advertising. For context, CTV now accounts for 45% of total advertiser spend for Viant, a record high.

The company's AI-driven solutions, including its Household ID and IRIS ID platforms, are also gaining traction, enabling advertisers to target audiences with surgical precision. This technological edge positions Viant to benefit from the broader shift toward programmatic advertising, a sector projected to grow at a 22.8% CAGR through 2030.

Technical Indicators: A Mixed Picture

Despite the bullish fundamentals, technical indicators paint a more cautious picture. The stock is currently trading below its 50-day and 200-day moving averages, a red flag for momentum traders. The MACD (Moving Average Convergence Divergence) is negative at -0.110, and the RSI (Relative Strength Index) sits at 47.33, in neutral territory. While this suggests the stock isn't overbought, the lack of upward revisions to the EPS estimate over the past 30 days—despite the price surge—raises questions about the sustainability of the rally.

Pivot points further complicate the outlook. The classic pivot point is at $14.37, and the stock is currently trading below key support levels ($13.71, $13.37). A break below $13.71 could trigger further selling pressure. Conversely, a rebound to the resistance level at $14.18 might offer a temporary reprieve.

Historical patterns reinforce the significance of these levels. From 2022 to now, DSP's support level has been $13.49, tested multiple times without breaking, while the resistance level has been $15.06, briefly surpassed but met with strong selling pressure. This suggests a recurring struggle between buyers and sellers, with support acting as a reliable floor but resistance proving a persistent ceiling.

Zacks Rank #3 (Hold): Neutral Outlook, But Why?

Viant's Zacks Rank of #3 (Hold) reflects a balanced view from analysts. While the company's revenue and margin expansion are impressive, the lack of upward revisions to EPS estimates suggests a lack of consensus on near-term growth. This is in stark contrast to peers like Duolingo (DUOL), which, despite a -14% monthly decline, has seen a 7.8% improvement in its EPS estimate year-over-year.

The disparity highlights a key risk for Viant: its recent gains may be driven more by speculative buying than by analyst conviction. With the stock trading at a 59.57% premium to its average price target of $21.75, investors should weigh the technical headwinds against the company's long-term potential.

Industry Tailwinds: A Tailwind for the Long Haul

Viant's position in the programmatic advertising sector is a critical advantage. The global programmatic advertising market is expected to grow from $802 billion in 2024 to $2.75 trillion by 2030, driven by mobile and CTV adoption. Viant's 32% year-over-year revenue growth in Q1 2025—despite a $50 million share buyback program—demonstrates its ability to scale efficiently.

The company's strategic investments in AI, including its AI Excellence Award-winning ViantAI, also position it to outperform competitors in an industry increasingly reliant on automation and predictive analytics. However, the sector's competitive landscape is heating up, with tech giants like Google and Meta expanding their ad-tech ecosystems.

The Verdict: A “Hold” with Caveats

Viant's recent surge is justified by its strong earnings trajectory and industry tailwinds. However, the lack of EPS revisions, bearish technical indicators, and a Zacks #3 rating suggest that this is not a “buy” for short-term traders. Instead, it's a “hold” for long-term investors who believe in the secular growth of digital advertising.

For those considering entry, the current price of $13.53 offers a test of the $13.71 support level. A break above $14.18 could signal a shift in momentum, but until then, patience is key. The broader market's volatility—exacerbated by regulatory uncertainties in the ad-tech sector—means that Viant's success will depend on its ability to maintain its technological edge and execute its share buyback strategy.

In summary, Viant Technology is a stock with significant upside potential, but its near-term sustainability hinges on its ability to align technical momentum with analyst optimism. For now, a cautious “hold” is warranted, with a focus on key support/resistance levels and the next earnings report. If the company can deliver on its revenue guidance and see EPS estimates climb, the 7.2% surge could be the start of a larger trend.
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