APP - The Trade Desk: A Leader In The New World Of Advertising

2024-05-18 04:38:46 ET

Summary

• The Trade Desk operates in the digital advertising industry, which has significant growth potential and opportunities in the open web market.
• The company's business strategy focuses on the demand side of the industry, connecting brands and advertising agencies with digital ad media through an AI platform.
• The Trade Desk has a strong market presence and partnerships with premium content suppliers, positioning it for exponential revenue growth and capturing more market share.
• I consider the stock price in line with my valuation, so I recommend waiting for a correction in its price.

Overview

I am studying the AdTech industry because I think it is an attractive market with very good economic factors (economies of scale and network effects). I have been writing an investment thesis about AppLovin ( APP ) and Perion Networks ( PERI ). Now, I analyze The Trade Desk ( TTD ). One of the most important conclusions about this industry is that size is critical, and The Trade Desk has it. From my perspective, the business strategy is very sound, but its stock price is fair, and I recommend waiting. My recommendation aligns with the other Seeking Alpha analysts and the SA Quant, as shown in Figure 1....

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