Latest news with #Kokai
Forbes
3 days ago
- Business
- Forbes
The Trade Desk Is Down 40%: Should You Buy TTD Stock At $70?
CHONGQING, CHINA - MAY 06: In this photo illustration, the logo of The Trade Desk, Inc. is displayed ... More on a smartphone screen, with the company's latest stock market chart in the background, reflecting investor sentiment and recent trading activity, on May 06, 2025, in Chongqing, China. (Photo illustration by) The Trade Desk (NASDAQ:TTD) stock has faced a considerable decline of 40% in 2025, predominantly due to internal restructuring initiatives that affected short-term performance and the slower-than-expected launch of its AI platform, Kokai. This downturn raises a vital question: Is TTD worth buying following this recent drop? We believe it is. At its present price of approximately $70, TTD stock seems appealing. Our assurance stems from a thorough evaluation that contrasts its current valuation with its historical operating performance and financial health. We have examined The Trade Desk against essential benchmarks, including its growth trajectory, consistent profitability, strong financial integrity, and proven resilience during economic recessions. This comprehensive analysis of TTD's operational capabilities and financial position leads us to conclude that there is little reason for long-term apprehension regarding the stock. However, if you are looking for higher returns with lower volatility compared to individual stocks, the Trefis High Quality portfolio offers an alternative — having outperformed the S&P 500 and delivering returns exceeding 91% since its launch. Separately, see – What's Happening With BBAI Stock? How Does The Trade Desk's Valuation Look vs. The S&P 500? When evaluating the cost per dollar of sales or profit, TTD stock appears quite expensive in comparison to the overall market. How Have The Trade Desk's Revenues Grown Over Recent Years? The Trade Desk's Revenues have significantly increased over the past few years. How Profitable Is The Trade Desk? The Trade Desk's profit margins are around the median level for companies within the Trefis coverage scope. Does The Trade Desk Look Financially Stable? The Trade Desk's balance sheet appears very robust. How Resilient Is TTD Stock During A Downturn? TTD stock has performed worse than the benchmark S&P 500 index during some recent downturns. While investors hope for a smooth recovery in the U.S. economy, how severe could the impact be if another recession occurs? Our dashboard How Low Can Stocks Go During A Market Crash illustrates how major stocks performed during and after the last six market crashes. Putting All The Pieces Together: What It Means For TTD Stock In conclusion, The Trade Desk's performance across the factors detailed above is as follows: The Trade Desk stock showcases strong performance across the attributes we've evaluated. Although its valuation seems high when assessed against the S&P 500 index, it's presently trading below its own three-year historical average price-to-sales (P/S) ratio of 19x. For comparison, its closest competitor, AppLovin (APP), is trading at a P/S ratio of roughly 25x based on trailing revenues. See – AppLovin Stock: Worth It At $365? Furthermore, the average analyst price target of $86 for TTD indicates a significant upside potential of over 25% from its current position. Not satisfied with the fluctuating nature of TTD stock? The Trefis High Quality (HQ) Portfolio, featuring 30 stocks, has a proven history of comfortably outperforming the S&P 500 over the last four years. What accounts for that? As a collective, HQ Portfolio stocks have delivered superior returns with less risk compared to the benchmark index; offering a smoother experience, as depicted in HQ Portfolio performance metrics.
Yahoo
4 days ago
- Business
- Yahoo
The Trade Desk, Inc. (TTD): A Bull Case Theory
We came across a bullish thesis on The Trade Desk, Inc. (TTD) on Rebound Picks' Substack. In this article, we will summarize the bulls' thesis on TTD. The Trade Desk, Inc. (TTD)'s share was trading at $67.96 as of 13th June. TTD's trailing and forward P/E were 82.88 and 64.1 respectively according to Yahoo Finance. The Lobby Entertainment Network digital displays showing dynamic and visually engaging advertisements. The Trade Desk (TTD), a leader in independent programmatic advertising, enables brands and agencies to bid in real time across a diverse range of media channels, including TV, mobile, display, audio, and retail media. Despite its strong market position, the company has faced a sharp drawdown, falling 51% from its December 2024 all-time high and down 42% year-to-date. The drop was largely triggered by its first revenue miss in eight years, reporting $741 million in Q4 2024 versus the expected $760 million, which led to a 40% stock crash in February 2025. This shortfall was blamed on the slow and buggy rollout of its next-gen AI-driven platform, Kokai, which also prompted class action lawsuits alleging the company misled investors about the product's readiness. However, since bottoming in April 2025, shares have rebounded over 50% as operational performance began improving. In its most recent earnings, The Trade Desk posted 25% year-over-year revenue growth and expanded margins to 8%, with guidance pointing to further momentum in Q2 2025. Two-thirds of clients are now transacting on Kokai, indicating improving adoption of the new platform. The recent acquisition of Sincera, a digital ad data company, further strengthens its capabilities. Financially, the company remains in excellent shape with $1.7 billion in cash and no debt, providing ample flexibility for growth and resilience. With the platform rollout back on track, a robust balance sheet, and renewed top-line momentum, The Trade Desk appears well-positioned for continued recovery, offering investors a compelling rebound opportunity after a period of turbulence. Previously, we highlighted a bullish thesis on The Trade Desk from FckYouMoney on Reddit in May 2025, emphasizing the market's overreaction to short-term hiccups and the company's long-term potential in connected TV and cookieless advertising. Since then, the stock price has appreciated by roughly 22%. Rebound Picks' thesis builds on this by detailing Kokai's rollout setbacks and the sharp drawdown that followed, but also highlights the subsequent rebound and accelerating adoption. Taken together, the two theses frame TTD as a high-growth, founder-led platform navigating execution risk, with long-term tailwinds in digital ad spend and data privacy creating asymmetric upside. The Trade Desk, Inc. (TTD) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 61 hedge fund portfolios held The Trade Desk, Inc. (TTD) at the end of the first quarter which was 63 in the previous quarter. While we acknowledge the risk and potential of TTD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
TTD Global Momentum Increases as International Growth Overtakes U.S.
In the last reported quarter, The Trade Desk's TTD 'International growth again outpaced North America for the ninth quarter in a row,' marking a major milestone. While North America accounts for 88% of advertising spend, TTD is steadily expanding its global footprint, driven by faster-growing international markets in EMEA and APAC, which are gaining traction despite a 12% share. This increasing global presence offers clients localized marketplace expertise across key the company, connected TV (CTV) remains a major driving force, and demonstrating strong performance across international markets. As audiences shift from traditional cable TV to streaming platforms, advertisers increasingly turn to programmatic CTV for its extensive reach. Trade Desk has capitalized on this trend with a vast reach of more than 90 million households and 120 CTV devices, solidifying its foothold in the fast-evolving digital TV landscape. This trend is growing globally, not just in the United States. Rising streaming in Europe and Asia drives more premium ad spending on Trade Desk's TTD's flagship products like Kokai, Unified ID 2.0 and OpenPath are gaining solid demand momentum as well. Management noted that two-thirds of its clients now use its AI platform, Kokai, with full adoption expected by year-end. Kokai helps cut costs, lowering the cost per conversion by 24% and the cost per acquisition by 20%. The Trade Desk price-consensus-chart | The Trade Desk Quote For the current quarter, TTD acknowledged the uncertain macro environment and its adverse impact on large global brands. However, it remains optimistic about its business strength, supported by Kokai demand, and healthy international pipeline activities. For the second quarter of 2025, Trade Desk expects at least $682 million in revenues, implying 17% year-over-year growth, assuming stable market conditions. This outlook factors in the prior year's political ad spend boost of about 1%. Adjusted EBITDA is projected to be around $259 a report by Precedence Research, the global digital ad spending market is projected to reach a hefty $1,483 billion by 2034, at a CAGR of 9.47% from 2025 to 2034. With global ad spend forecasted to grow, particularly in CTV and retail media, TTD is well-positioned to convert accelerating international momentum into a balanced global revenue base. Magnite Inc. MGNI is seeing strong momentum in the CTV space, with CTV contribution excluding Traffic Acquisition Costs (ex-TAC) rising 19% year over year in 2024. For the full year, the company delivered $607 million in ex-TAC contribution and handled more than $6 billion in ad spend. This growth is fueled by rising programmatic adoption and ad investments from major players like Walmart, Disney, Fox, Roku, LG, Vizio, Warner Bros. Discovery and Paramount. Its expanded deal with Disney now covers live sports, global markets and podcasts, with Disney inventory added to ClearLine. It's also growing its international sports reach with new partners like FIFA and Sky New Zealand. In 2025, more generative AI tools are set to boost efficiency and unlock new revenue to Trade Desk, PubMatic, Inc. PUBM is benefiting from the rise of CTV, strengthening its position in the fast-growing programmatic video space. The ongoing shift of ad spending from traditional TV to streaming, especially in a market that values flexible, spot-based buying, is expected to further support PubMatic's growth. The company has already achieved more than 80% adoption among the top 30 streaming platforms. It is also growing in global markets, with strong results in India, Europe, Australia and Japan. It's expanded work with BBC and other broadcasters shows rising trust in its platform for streaming ad monetization. Shares of TTD have plunged 28.7% in the past year compared with the Zacks Internet -Services industry's fall of 4.3%. Image Source: Zacks Investment Research From a valuation standpoint, TTD trades at a forward price-to-sales of 10.79X, higher than the industry's average of 5.01X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for TTD's earnings has remained unchanged over the past 30 days. Image Source: Zacks Investment Research TTD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Trade Desk (TTD) : Free Stock Analysis Report Magnite, Inc. (MGNI) : Free Stock Analysis Report PubMatic, Inc. (PUBM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19-06-2025
- Business
- Yahoo
The Trade Desk Repurchases $386M Stock: A Smart Capital Move?
The Trade Desk, Inc. TTD announced in its first-quarter 2025 earnings release that it used $386 million in cash to buy back its common stock. Strong balance sheet and consistent cash flow aided the repurchases. Operating cash flow was $291 million while free cash flow was $230 million in the first quarter, so the buyback exceeded quarterly cash generation. The company's balance sheet remained strong at the end of the first quarter with approximately $1.7 billion in cash, cash equivalents and short-term investments, and it has no debt. In prior filings, TTD's board authorized a large repurchase program. In January 2025, an additional $564 million was approved, bringing the total authorization to $1 billion. TTD is confident in its ability to outpace the market and seize future opportunities owing to solid execution across key initiatives—connected TV (CTV), retail media, international expansion, Kokai, UID2 and OpenPath. The Trade Desk emphasizes a balanced, efficient cost structure to stay agile amid evolving conditions. TTD continues to drive advancements in the advertising world with fresh launches and collaborations. In June 2025, the company announced an expanded partnership with HOY, the media platform operated by i-CABLE Communications Limited. Moreover, it unveiled Deal Desk, an innovation within its Kokai platform designed to enhance how advertisers and publishers manage one-to-one deals and upfront commitments. For the second quarter of 2025, the company expects revenues of at least $682 million, suggesting 17% year-over-year growth, assuming stable macroeconomic conditions. This includes the impact of lapping prior political ad spend, which contributed around 1% to the prior-year quarter revenues. Adjusted EBITDA is expected to be about $259 million for the second quarter. Supported by a healthy balance sheet and steady cash generation, The Trade Desk plans to continue opportunistic buybacks and offset dilution from employee stock grants. Magnite, Inc. MGNI announced a new share buyback program in February 2024, authorizing up to $125 million in repurchases, which includes both common stock and convertible notes. This program runs through Feb. 1, 2026. The stated objective is to return capital to shareholders and manage potential dilution related to convertible instruments. As of the end of the first quarter of 2025, Magnite had already utilized a portion of this authorization, leaving $88 million available for strategic deployment under the plan. PubMatic, Inc. PUBM has also been aggressive in its capital return initiatives. The company initially had a $75 million buyback program in place, which was expanded by $100 million in February 2024 and again by another $100 million in May 2025. This brings the total authorization to $275 million, with the latest extension running through the end of 2026. PubMatic's management stated that the buyback reflects confidence in the company's long-term value and strong financial position. As of the end of March 2025, the company had spent approximately $138.2 million to repurchase around 8.7 million shares, demonstrating consistent execution of the buyback strategy. Shares of TTD have plunged 29.5% in the past year against the Zacks Internet -Services industry's growth of 0.6%. Image Source: Zacks Investment Research From a valuation standpoint, TTD trades at a forward price-to-sales of 10.88X, higher than the industry's average of 5.18X. Image Source: Zacks Investment Research TTD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Trade Desk (TTD) : Free Stock Analysis Report Magnite, Inc. (MGNI) : Free Stock Analysis Report PubMatic, Inc. (PUBM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Campaign ME
12-06-2025
- Business
- Campaign ME
The Trade Desk launches Deal Desk to improve transparency
Global adtech platform The Trade Desk has announced the launch of Deal Desk, a new component of its Kokai platform that aims to bring greater visibility and accountability to private marketplace (PMP) deals – direct, pre-negotiated programmatic deals between advertisers and publishers or aggregators. The AI-powered tool introduces a Deal Quality Score, giving advertisers insight into how each deal performs in terms of value, pacing and inventory quality. It also highlights premium alternatives across open marketplaces when deals underdeliver. Advertisers can now assess whether their deals are contributing to campaign goals or if better options exist elsewhere, while publishers can view the same score and receive recommendations to help improve performance. The tool also automates deal activation and introduces built-in mechanisms for expansion or cancellation when delivery issues arise. 'The Trade Desk is committed to improving the supply chain for digital advertising on the open internet, and improving deal performance is a vital element of this work,' said Will Doherty, SVP, Inventory Development, The Trade Desk. 'Deals have not kept pace with advances in AI and transparency that savvy media buyers and sellers have come to expect. Deal Desk represents a long overdue innovation for our industry and will help advance the strategic relationships between advertisers and their premium publisher partners.' While PMPs still account for a large share of programmatic spend, many lack visibility into performance metrics — a gap Deal Desk aims to fill. The platform also supports advertisers shifting towards biddable activation, where deals are made available in real-time auctions rather than fixed contracts. Initial publishers who have adopted Deal Desk for their private marketplace deals include industry leaders such as Disney.
