TTD - The Trade Desk: Positioned For Success As A New Era Of Digital Advertising Starts (Rating Upgrade)
2024-06-18 03:17:45 ET
Summary
- Trade Desk is a cloud-based ad-buying platform that exceeded revenue and earnings expectations in its Q1 FY24 earnings report while outperforming the S&P 500 and Nasdaq 100 YTD.
- The strength in revenue is driven by growth in CTV and retail media as advertisers shift their ad spend towards premium inventory while adopting UID2 to drive superior ROI on ad spend.
- During the quarter, the management built robust partnerships with some of the leading publishers, including Disney and Roku, while building a new approach to audience-based buying on Kokai.
- Given the robust product innovation, secular growth vectors and financial discipline, I believe TTD stock is positioned to drive upside from its current levels, making it a "buy".
Introduction & Investment Thesis
Trade Desk (TTD) is a cloud-based ad-buying platform that helps ad buyers such as brands and advertising agencies create, execute, measure, and optimize targeted ad campaigns across ad formats and channels that include Connected TV ("CTV"), display, and audio, among others. The company has outperformed the S&P 500 and Nasdaq 100 YTD....
The Trade Desk: Positioned For Success As A New Era Of Digital Advertising Starts (Rating Upgrade)