Taboola (TBLA) Stock Forecast & Price Target

Taboola.com Ltd is projected to achieve net revenue of $722 million for FY26, reflecting a year-over-year increase of 6%, along with an adjusted EBITDA of $220 million, which signifies a 7% growth compared to the previous year. The company’s integration of generative AI across various functions, including treasury, financial planning and analysis, research and development, and sales, is expected to drive productivity gains, enhancing overall operational efficiency. Additionally, an increase in capital expenditures to $40–$45 million in 2025, attributed to office upgrades, indicates a commitment to strengthening infrastructure and supporting future growth.

Taboola.com Ltd faces several fundamental challenges that contribute to a negative outlook on its stock, including a potential weakness in economic and advertising demand, which is critical given that the company generates the majority of its revenue in the United States. Additionally, intensifying competition, particularly from major players like Google, and issues related to Yahoo and Microsoft further threaten its market position. Furthermore, rising interest rates may elevate Taboola's weighted average cost of capital (WACC), compounding the adverse financial implications for the company's growth prospects.