Magnite Stock Sinks 26%, Rebound Coming?
Magnite (MGNI) stock has fallen by 26.1% in less than a month, from $20.09 on 27th Oct, 2025 to $14.84 now. Should you buy this dip? Dip buying is a viable strategy for quality stocks that have a history of recovering from dips.
Dip buying is a viable strategy for quality stocks that have a history of recovering from dips. As it turns out, MGNI stock passes basic quality checks. Historically, the median return for the 12-month period following sharp dips was 13% , with median peak return reaching 51%. We define sharp dip as stock going down 30% or more, in less than 30 day period.
Below, we get into details of historical dips and subsequent returns.
Historical Median Returns Post Dips
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| Period | Past Median Return |
|---|---|
| 1M | -3.5% |
| 3M | -10.8% |
| 6M | -3.1% |
| 12M | 12.6% |
Historical Dip-Wise Details
MGNI had 17 events since 1/1/2010 where the dip threshold of -30% within 30 days was triggered
- 51% median peak return within 1 year of dip event
- 168 days is the median time to peak return after a dip event
- -32% median max drawdown within 1 year of dip event
| 30 Day Dip | MGNI Subsequent Performance | |||||||
|---|---|---|---|---|---|---|---|---|
| Date | MGNI | SPY | 1Y | Peak Return |
Max Drop |
# Days to Peak |
||
| Median | 13% | 51% | -32% | 168 | ||||
| 10102025 | -34% | 1% | -16% | 15% | -25% | 17 | ||
| 3132025 | -31% | -8% | 22% | 120% | -25% | 168 | ||
| 8102023 | -42% | 2% | 54% | 98% | -19% | 341 | ||
| 3152023 | -30% | -4% | 35% | 84% | -23% | 120 | ||
| 9232022 | -31% | -12% | 13% | 137% | -11% | 293 | ||
| 7142022 | -34% | -8% | 111% | 114% | -20% | 364 | ||
| 5092022 | -32% | -12% | 3% | 51% | -37% | 284 | ||
| 1212022 | -31% | -6% | -17% | 16% | -55% | 67 | ||
| 11232021 | -33% | 8% | -45% | 0% | -70% | 1 | ||
| 3242021 | -36% | -0% | -67% | 8% | -73% | 8 | ||
| 3122020 | -39% | -24% | 708% | 915% | -32% | 336 | ||
| 3012018 | -33% | -4% | 307% | 303% | 0% | 365 | ||
| 11032017 | -47% | 4% | 54% | 96% | -28% | 294 | ||
| 8102017 | -31% | 0% | -6% | 8% | -61% | 34 | ||
| 3162017 | -33% | 5% | -65% | 7% | -74% | 54 | ||
| 8032016 | -34% | 4% | -57% | 6% | -57% | 6 | ||
| 5152014 | -34% | -1% | 30% | 49% | -32% | 286 | ||
Magnite Passes Basic Financial Quality Checks
Revenue growth, profitability, cash flow, and balance sheet strength need to be evaluated to reduce the risk of a dip being the sign of a deteriorating business situation.
| Quality Metrics | Value | Quality Check |
|---|---|---|
| Revenue Growth (LTM) | 6.3% | Pass |
| Revenue Growth (3-Yr Avg) | 7.7% | Pass |
| Operating Cash Flow Margin (LTM) | 31.7% | Pass |
| Leverage (see below) | – | Pass |
| => Interest Coverage Ratio | 4.2 | |
| => Cash To Interest Expense Ratio | 24.1 |
Not sure if you can take a call on MGNI stock? Consider portfolio approach
The Best Investors Think In Portfolios
Stocks soar and sink – the key is staying invested. A balanced portfolio keeps you in the market, boosts gains and reduces single stock risk
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.