MediaAlpha Stock: Absurdly Expensive

MAX sells leads to insurance companies. Optimism towards macro has led to a ten-month high — and created an attractive short opportunity

📍TL;DR

• Insurance marketing firms like MediaAlpha have seen their stocks soar in 2023.

• The catalyst hinges on an anticipated rebound in carrier acquisition spending; MediaAlpha has struggled amid sharply reduced profitability in the auto space.

• But a ~$1.2 billion enterprise value prices in a rebound — and then some.

• After this rally, a short of MAX works w…