Latest news with #programmaticAdvertising
Yahoo
19 hours ago
- Business
- Yahoo
After a 50% Crash, This Tech Stock Is a Tremendous Value
The Trade Desk stock was crushed on its first earnings miss in eight years. However, the market opportunity is massive and continues to grow. The Trade Desk is undervalued historically, and its results are excellent. These 10 stocks could mint the next wave of millionaires › Streaming viewership surpassed the combined total of broadcast and cable viewership for the first time ever in May 2025. This is a years-long trend that has seen streaming viewership catapult 71% over the past four years -- even as broadcast and cable viewership dropped 21% and 39%, respectively. Investors should be asking themselves which companies are likely to benefit significantly from the shift of broadcast and cable viewers to streaming services. The Trade Desk (NASDAQ: TTD) is one of them, and its stock is on sale. If you're not entirely sure exactly what The Trade Desk does, here it is in a nutshell. The Trade Desk software is a Demand Side Platform, or DSP. This means that it executes programmatic advertising purchases on behalf of its clients. It works like this: When a website, streaming service, social media platform, or other digital service has ad space to sell, it sends out a bid request. The DSP responds in real time with a bid based on preset criteria for its client's ad campaign. The ad then instantly appears. The Trade Desk adds value to its service by providing its clients with a wealth of useful data. The programmatic ad market is already massive and continues to grow rapidly. Sources estimate that 91% of digital advertising and at least 56% of total global advertising is programmatic. For perspective, global advertising spending is expected to hit $1 trillion this year. As shown below, programmatic advertising spending is expected to reach $299 billion this year in the U.S. alone and is projected to increase to $414 billion over the next few years. The Trade Desk is poised to benefit greatly, and stockholders should be rewarded handsomely over the long haul. The Trade Desk stock slumped after it missed its earnings estimates for the first time in eight years in the fourth quarter of 2024; however, the sell-off is considerably overdone. The fall has caused several valuation metrics to dip well below historical averages. For instance, the company's price-to-sales ratio (a common metric to value high-growth technology companies) is 82% off its five-year average: The ratio drops under 13 on a forward basis. The market is pricing The Trade Desk like a distressed business, but it is far from that status. The earnings miss in Q4 2024 was disappointing. However, sales still grew 22% year over year to $741 million in the quarter and 26% for the full year, eclipsing $2.4 billion. The Trade Desk has since reported encouraging Q1 2025 results. Growth accelerated to 25%, with sales reaching $616 million year over year. Operating income nearly doubled over the prior year, going from $28.7 million to $54.5 million. The company is also on firm financial footing, with $1.7 billion in cash and investments on hand, and current assets of $4.9 billion, compared to $2.7 billion in current liabilities. Common stock of $386 million was also repurchased during the quarter. When a company buys back its stock, the number of shares available decreases, making existing shares more valuable. In short, The Trade Desk is growing rapidly, in great financial shape, and considerably undervalued, making it look like a great buy for investors right now. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $413,238!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $40,540!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $699,558!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of June 30, 2025 Bradley Guichard has positions in The Trade Desk. The Motley Fool has positions in and recommends The Trade Desk. The Motley Fool has a disclosure policy. After a 50% Crash, This Tech Stock Is a Tremendous Value was originally published by The Motley Fool
Yahoo
2 days ago
- Business
- Yahoo
The Trade Desk, HOY Expand Partnership to Boost Programmatic CTV Advertising in Hong Kong
The Trade Desk Inc. (NASDAQ:TTD) is one of the best NASDAQ growth stocks to buy for the next 3 years. On June 18, The Trade Desk announced an expanded partnership with HOY. The collaboration will enable programmatic trading of HOY's connected TV/CTV advertising inventory via The Trade Desk's platform. HOY will adopt advanced identity and access technologies, specifically Unified ID 2.0 (UID2) and OpenPath, to enhance targeting precision. The partnership comes as audiences are shifting towards on-demand and streaming content. Statista reported that the global CTV ad spending is projected to reach more than $38 billion by 2027. A large array of computer screens and tech equipment representing the technology company's self-service cloud-based platform. HOY's proactive integration of UID2 and readiness for OpenPath deployment positions it to create a transparent and high-performance advertising ecosystem. UID2 was originally developed by The Trade Desk, a next-gen identity solution. The Trade Desk Inc. (NASDAQ:TTD) is a technology company with a self-service cloud-based ad-buying platform for buyers to plan, manage, optimize, and measure data-driven digital advertising campaigns. HOY is a media platform operated by i-CABLE Communications Limited in Hong Kong. While we acknowledge the potential of TTD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the . READ NEXT: and . Disclosure: None. This article is 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
30-06-2025
- Business
- Yahoo
5 Revealing Analyst Questions From PubMatic's Q1 Earnings Call
PubMatic's first quarter results reflected resilience in the face of sector headwinds, as the company's performance was shaped by both ongoing challenges and emerging opportunities within the programmatic advertising landscape. Management emphasized that, while revenue declined year over year, core business areas such as connected TV (CTV) and supply path optimization (SPO) experienced robust growth. CEO Rajeev Goel highlighted that 'excluding the affected DSP and political spend, year-over-year revenue growth accelerated to 21%,' underscoring the strength in newer media channels and data-driven offerings. The company continues to adapt to shifting advertiser preferences and industry changes, helping to offset softness in certain display segments. Is now the time to buy PUBM? Find out in our full research report (it's free). Revenue: $63.83 million vs analyst estimates of $62.09 million (4.3% year-on-year decline, 2.8% beat) Adjusted EPS: -$0.04 vs analyst estimates of -$0.07 ($0.03 beat) Adjusted Operating Income: -$2.21 million vs analyst estimates of -$14.38 million (-3.5% margin, 84.7% beat) Revenue Guidance for Q2 CY2025 is $68 million at the midpoint, roughly in line with what analysts were expecting EBITDA guidance for Q2 CY2025 is $10.5 million at the midpoint, below analyst estimates of $11.36 million Operating Margin: -18.6%, down from -8.3% in the same quarter last year Market Capitalization: $565.9 million While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Eric Martinuzzi (Lake Street Capital) inquired about the impact of the Google AdTech antitrust ruling. CEO Rajeev Goel explained that customers are increasingly considering alternatives to Google, and highlighted PubMatic's potential to gain share as industry dynamics evolve. Zach Cummins (B. Riley) asked for updates on key DSP partner volumes and the effect on display revenue. CFO Steve Pantelick described stability with this partner and expects to lap the impact by the end of Q2, citing growth opportunities beyond the current technical shift. Simran Biswal (RBC) questioned macro spending trends and resilience of CTV and emerging products. Goel responded that advertiser budgets remain steady, while secular shifts toward streaming and lower-funnel performance channels favor PubMatic's offerings. Jacob Armstrong (KeyBanc) probed how higher-margin CTV revenues will be balanced between margin expansion and reinvestment. Pantelick emphasized a disciplined approach, reinvesting in secular growth areas while maintaining adjusted profitability. Andrew Boone (JMP) sought clarity on the roadmap for new products and bridging normalized growth to reported results. Goel outlined a focus on first-party data, supply chain efficiency, and performance optimization, while Pantelick detailed the impact of DSP and political ad headwinds on growth figures. In the coming quarters, our team will closely monitor (1) the pace of CTV and omni-channel video adoption, particularly as advertisers shift budgets from linear TV to streaming; (2) the rollout and client uptake of new AI-powered buying and curation tools; and (3) stabilization in display and emerging product segments as the company laps DSP and political advertising headwinds. Execution in international markets and agency direct sales will also be important indicators of sustained momentum. PubMatic currently trades at $11.68, up from $10.99 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
Yahoo
24-06-2025
- 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
20-06-2025
- Business
- Yahoo
The Trade Desk vs. PubMatic: Which Ad-Tech Stock Is the Better Pick?
Both The Trade Desk TTD and PubMatic PUBM play pivotal roles in the programmatic advertising ecosystem, but at opposite ends of the spectrum. TTD operates a leading demand-side platform (DSP), which helps advertisers focus on data-driven ads. PubMatic, on the other hand, is a sell-side platform (SSP) that helps publishers across the open internet to control access to their inventory and boost monetization. Since both firms having massive exposure to the booming CTV and retail media trends, this makes for an intriguing comparison for investors. So, which stock makes a better investment pick at present? Let's deep dive into the pros and cons for each company. 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 acquisition of Sincera, a leading digital advertising data company, will aid in enhancing its programmatic advertising platform by integrating Sincera's actionable insights on data quality. It recently unveiled the OpenSincera application to offer Sincera's rich advertising metadata to the ad tech ecosystem. The company's Kokai platform is being used by two-thirds of the clients, much ahead of schedule. The platform is delivering on lower funnel KPIs, including 24% lower cost per conversion and 20% lower cost per acquisition, per TTD. 100% adoption by clients is expected to be completed by this year's end. The integration of Koa AI tools was highlighted by management as a 'game changer' for the Kokai platform. It recently introduced Deal Desk, an innovation within its Kokai platform designed to enhance how advertisers and publishers manage one-to-one deals and upfront commitments. First-quarter revenues of $616 million jumped 25% year over year and surpassed management's guidance of at least $575 million. Adjusted EBITDA was $208 million (34% margin) compared with $162 million (33% margin) in the year-ago quarter. Video, which includes connected TV or CTV, represented a high 40 percent share of digital spend, while mobile had a mid-30 percent share. Display constituted a low double-digit share, and audio represented around 5%. Customer retention was over 95% for the quarter reported. Nonetheless, increasing macroeconomic uncertainty and escalating trade tensions do not augur well for TTD, as these could squeeze ad budgets. TTD highlighted the impact of the volatile macro backdrop, particularly on the large global brands. If macro headwinds worsen or persist into the second half of 2025, revenue growth may face further pressure due to reduced programmatic demand. The intensely competitive nature of the digital advertising industry, dominated by industry giants like Alphabet and Amazon, continues to put pressure on TTD's market position. While CTV remains a strong revenue driver, the market is increasingly fragmented and competitive. Heavy reliance on CTV for growth is a concern, as any adverse impact on this segment could weigh heavily on the company's overall performance. Moreover, TTD derived 88% of its revenues from North America, while only 12% came from international markets. A weak international footprint limits TTD's total addressable market expansion potential. Excluding the drag from a large DSP client and political ad revenues, PubMatic's underlying business grew 21% year over year in the first quarter of 2025. The strong momentum is being driven by secular tailwinds in CTV, SPO (Supply Path Optimization) and emerging revenue streams. Importantly, these growth drivers now comprise 70% of total revenues, signaling a diversified business that is less dependent on legacy display advertising. Like TTD, PUBM is gaining from growth in the CTV business, which bolsters its strategic positioning in the high-growth programmatic video. PUBM is expected to gain from the continuing shift of ad dollars from linear TV to streaming, especially in a market favoring programmatic spot buys with flexibility over heavy upfront commitments. PubMatic has already secured over 80% penetration among the top 30 streamers. In the last reported quarter, CTV revenues surged over 50% year over year, while omni-channel video revenues grew 20% and represented 40% of total revenues. PubMatic is also heavily investing in Activate for SPO, Convert for commerce media, and Connect for curation to drive growth and create sticky customer engagement. Strategic partnerships like Spectrum Reach and TCL in live sports augur well. PubMatic is embedding AI across its portfolio to enhance both efficiency and outcomes. It has launched a GenAI-powered end-to-end platform that offers buyers direct access to the open internet almost entirely. This technology aids in optimizing the entire stage of the media buying process, including inventory discovery and performance optimization. PubMatic is scaling across international markets. The company is witnessing strong performance in India, Europe, Australia and Japan. The recent expansion of its collaboration with BBC and other traditional broadcasters indicates growing recognition of PUBM's platform for streaming monetization. Given these factors, PUBM forecasts $66-$70 million in revenues, assuming over 15% year-over-year growth of the underlying business. The competitive landscape and the ongoing macro uncertainty and cautious advertiser behavior are concerning. One of PubMatic's major DSP clients also revised the bidding approach, affecting PUBM's top line. In the last reported quarter, revenues declined 4% year over year despite strength in the underlying business. Year to date, PUBM and TTD have lost 24.7% and 41.6%, respectively, amid macroeconomic uncertainties and effects of tariffs and inflation surrounding the industry. Image Source: Zacks Investment Research Valuation-wise, TTD is overvalued, as suggested by the Value Score of F, while PUBM has a Value Score of B. Image Source: Zacks Investment Research In terms of the forward 12-month price/earnings ratio, TTD shares are trading at 10.87X, higher than PUBM's 1.74X. Analysts have made significant downward revisions for PUBM's bottom line. Image Source: Zacks Investment Research For TTD, there is a relatively lower downward revision. Image Source: Zacks Investment Research TTD and PUBM currently carry a Zacks Rank #3 (Hold) each. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The Trade Desk, driven by its leading DSP position, rapid innovation through platforms like Kokai and OpenPath, and strong execution in high-growth areas like CTV and retail media, emerges as a stronger investment case. While PubMatic shows potential, significant downward estimate revision and declining revenues keep us on the sidelines. 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 PubMatic, Inc. (PUBM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
