Industry Overview - The global digital advertising market is projected to grow at a CAGR of 9.4% from 2026 to 2035, indicating its attractiveness as a long-term growth market in the technology sector [1]. Company Profiles The Trade Desk (TTD) - TTD operates a leading demand-side platform (DSP) focused on data-driven advertising, facing significant competition from major players like Meta, Apple, Google, and Amazon [2][5]. - TTD's total operating costs surged 17% year over year to $457 million, driven by investments in enhancing platform capabilities [6]. - The company expects revenues of at least $840 million for Q4 2025, with a projected year-over-year revenue growth rate of 18.5% [9]. - TTD's AI-powered Kokai platform is used by 85% of its clients, strengthening its competitive position [8][11]. PubMatic (PUBM) - PUBM is a sell-side platform that helps publishers monetize their inventory, with a focus on connected TV (CTV) and retail media growth [2][10]. - PUBM reported over 50% year-over-year growth in CTV revenues in Q3, capitalizing on the shift of approximately $155 billion in linear television ad spend to digital formats [12]. - The company anticipates fourth-quarter revenues between $73 million and $77 million, with adjusted EBITDA projected between $19 million and $21 million [16]. - PUBM's revenues from emerging revenue streams grew over 80% year over year, contributing 10% of total revenues in Q3 [14]. Competitive Landscape - Both TTD and PUBM are experiencing growth in CTV and retail media but face rising competition and macroeconomic risks [11]. - TTD's focus on geographic expansion and AI integration presents both opportunities and challenges, particularly with regulatory changes [7][8]. - PUBM's reliance on major DSP clients poses risks, as evidenced by a recent revision in bidding approach affecting its top line [17]. Share Performance & Valuation - Over the past month, TTD and PUBM's shares have declined by 25.8% and 14.7%, respectively [20]. - TTD's shares are trading at a forward price/sales ratio of 3.55X, while PUBM's is at 1.09X, indicating a higher valuation for TTD [21]. Analyst Estimates - Analysts have kept estimates unchanged for both TTD and PUBM for the current fiscal year, indicating stability in expectations [22][24]. - TTD currently holds a Zacks Rank of 4 (Sell), while PUBM has a Zacks Rank of 3 (Hold), suggesting PUBM may be a better pick at the moment [25].

Group 1 - The Trade Desk, Inc. (TTD) has experienced a significant stock price collapse over the last 12 months, losing two-thirds of its market capitalization, which presents a contrarian investment opportunity [1] - The investment strategy focuses on GARP (Growth At a Reasonable Price) and turnaround stocks, emphasizing the importance of valuation in stock selection [1] - The author identifies stocks with limited downside potential and unlimited upside potential as part of their investment philosophy [1] Group 2 - The author is a professional portfolio manager with a background in business studies across multiple countries, including France, the U.S., and Russia [1] - The author's investment opinions and decisions are publicly available on the eToro platform, showcasing a transparent investment approach [1]

Core Insights - The Trade Desk (TTD) is facing significant pressure on its stock, primarily due to challenges in the digital advertising and Open Internet sectors [1] - Recent earnings report from The Trade Desk revealed some disappointments, indicating potential issues in performance and market positioning [1] - Leadership changes within the company may contribute to the current challenges and uncertainties surrounding its future [1]

Core Insights - The Trade Desk, Inc. (TTD) is set to report its fourth-quarter 2025 results on February 25, with a consensus estimate for earnings at 59 cents and total revenues at $841.9 million, reflecting a 13.6% year-over-year increase [1][10] Revenue and Earnings Expectations - TTD anticipates revenues to be at least $840 million, with an 18.5% year-over-year growth rate when excluding U.S. political ad spend from the prior year [2] - The company projects an adjusted EBITDA of $375 million [2] - TTD has beaten the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 8.4% [2] Business Performance Factors - Continued momentum in Connected TV (CTV) is expected to support TTD's top-line performance, as CTV is the fastest-growing segment in digital advertising [5] - Management noted a rapid transition towards biddable CTV, which is anticipated to become the default buying model, offering greater flexibility and control for advertisers [6] - Other growth drivers include retail media, international expansion, and the Kokai platform, with 85% of clients using Kokai as their default experience [7] Competitive Landscape - TTD faces significant competition from major players like Amazon and Alphabet, particularly in the CTV space [10][12] - The digital advertising market is characterized as a buyer's market, leading to persistent pricing and margin pressures [13] - TTD's stock has declined 51.4% over the past six months, underperforming the Internet-Services industry and the S&P 500 [16] Valuation Metrics - TTD's stock is trading at a forward 12-month price/earnings ratio of 11.82X, which is lower than the industry average of 25.3X [20] - Competitors like Amazon and Alphabet are trading at higher forward price/earnings multiples of 25.65X and 25.7X, respectively [21] Strategic Initiatives - TTD's initiatives such as OpenPath, Deal Desk, Pubdesk, and OpenAds aim to enhance transparency and supply-chain efficiency by connecting advertisers directly to publishers [8] - The company is focusing on embedding AI across its portfolio, which may increase capital expenditures and operational costs [14]

Company Overview - The Trade Desk, Inc. (TTD) has a market cap of $12.2 billion and is a leading independent demand-side platform (DSP) for digital advertising across various channels including connected TV, display, video, audio, mobile, and social [1] - Founded in 2009 and headquartered in Ventura, California, TTD provides data-driven ad-buying software utilized by major global brands and advertising agencies [1] Stock Performance - TTD shares have significantly underperformed the broader market, declining 68.5% over the past year, while the S&P 500 Index has increased by nearly 11.9% [2] - In 2026, TTD's stock fell by 33.5%, contrasting with a slight dip in the S&P 500 on a year-to-date basis [2] Comparison with ETFs - TTD has also lagged behind the Invesco AI and Next Gen Software ETF (IGPT), which has gained 28.4% over the past year and 4.5% this year [3] Recent Developments - On February 5, TTD shares dropped about 4% amid a broader selloff in software and ad-tech stocks due to fears that new AI platforms could disrupt traditional software applications [5] - The stock experienced a more than 10% decline in the last week of January following the unexpected resignation of CFO Alex Kayyal, raising governance and execution concerns despite the company reaffirming Q4 guidance [6] Earnings Expectations - For FY2025, analysts project TTD's EPS to grow by 26.9% to $0.99 on a diluted basis [7] - TTD has a disappointing earnings surprise history, missing consensus estimates in three of the last four quarters while beating forecasts once [7] Analyst Ratings - Among 39 analysts covering TTD, the consensus rating is a "Moderate Buy," consisting of 17 "Strong Buy" ratings, 2 "Moderate Buys," 18 "Holds," 1 "Moderate Sell," and 1 "Strong Sell" [7] - The current configuration is considered bearish compared to a month ago when there were 18 "Strong Buy" recommendations [8]

Group 1: The Trade Desk - The Trade Desk is perceived as undervalued by Wall Street analysts, with a median target price of $50 per share, indicating a 100% upside from the current price of $25 [8][10] - The company specializes in adtech software that utilizes artificial intelligence to optimize digital advertising campaigns, providing a competitive edge due to its independent business model [3][4] - The Trade Desk's lack of ownership over media content allows for better data sharing from publishers, enhancing the effectiveness of its targeting and measurement tools across the open internet [5][6] - Despite a significant decline of 80% from its peak, the stock is expected to see adjusted earnings growth of 13% annually through 2026, making its current valuation of 15 times earnings appear attractive [6][7] Group 2: Datadog - Datadog is also considered undervalued, with a median target price of $180 per share, suggesting a 50% upside from its current price of $120 [15] - The company develops observability and security software that integrates signals from various enterprise technology components, featuring an AI engine for anomaly detection and incident management [11][12] - Datadog has been recognized as a leader in its market segments, with significant growth potential projected at approximately 16% annually for digital experience monitoring and 15% for AI in IT operations through 2030 [12][13] - The company reported a 20% growth in adjusted earnings in the fourth quarter, although its current valuation of 60 times earnings is considered high; however, ongoing investments in R&D may lead to accelerated earnings growth in the future [14]

UK e-commerce group THG has formed a partnership with advertising tech company The Trade Desk to provide advertisers with self-serve access to retail audience data from its beauty platforms. Under the arrangement, advertisers and agencies using The Trade Desk’s Kokai media-buying system can tap audience segments built from shopper data across the Cult Beauty and LOOKFANTASTIC sites. These segments cover the entire marketing funnel, including “high-value” and price-sensitive customers, intent-led browser ...

Group 1: Market Overview - Recent weakness in the stock market has created buying opportunities, with some stocks at their lowest levels in years [1] - Investors are encouraged to act now rather than wait for better prices, as the market could reassess these stocks at any time [2] Group 2: Microsoft - Microsoft has seen its premium valuation in the tech sector diminish due to recent market weakness and a poorly received earnings report [3] - The company remains dominant in its industry and delivered strong growth in its latest quarter, presenting a rare buying opportunity [4] Group 3: The Trade Desk - The Trade Desk reported an 18% year-over-year growth in Q3, which is slower than previous quarters but still impressive [5] - Wall Street expects 17% revenue growth for 2026, indicating that the company's growth potential remains intact despite current challenges [6] - The stock is currently valued at a low level of 13 times forward earnings, making it an attractive investment opportunity [6]

Company Overview - The Trade Desk, Inc. (NASDAQ:TTD) is a leading supplier of advertising technology, providing digital marketers with solutions to plan, manage, and optimize their digital ad campaigns across various platforms and channels using a self-service, transparent software and cloud-based platform [5] Analyst Ratings and Price Targets - KeyBanc has cut its price target for The Trade Desk, Inc. to $40 from $88 while maintaining an Overweight rating, reflecting a more conservative growth forecast and lowered EV/EBITDA multiples [1] - Rosenblatt has also reduced its price target for The Trade Desk, Inc. to $53 from $64 while retaining a Buy rating, following the sudden departure of the company's CFO, Alexander Kayyal, who had been in the role for only five months [4] Financial Estimates - The Trade Desk, Inc. has reaffirmed its fourth-quarter 2025 estimates, anticipating revenue growth of "at least $840 million," which represents a rise of 13% (or 19% without political advertising), and adjusted EBITDA of "approximately $375 million," indicating a 7% gain [3]

Core Viewpoint - The Trade Desk, Inc. (NASDAQ:TTD) is considered one of the most oversold stocks on NASDAQ, with recent price target adjustments reflecting a more conservative growth outlook amid competitive pressures in the advertising sector [1][2]. Group 1: Price Target Adjustments - KeyBanc reduced its price target for The Trade Desk, Inc. from $88 to $40 while maintaining an Overweight rating, indicating expectations of a volatile quarter for small and mid-cap advertising earnings [1]. - Rosenblatt also lowered its price target from $64 to $53, keeping a Buy rating, citing the unexpected termination of CFO Alexander Kayyal as a factor affecting the company's valuation premium [2]. Group 2: Company Overview - The Trade Desk, Inc. offers a self-service, cloud-based ad-buying platform that includes omnichannel advertising, audience targeting, identity solutions, API, custom, programmatic, measurement, and optimization services [2]. Group 3: Market Context - The current market environment features competition for incremental advertising budgets and a focus on agentic AI themes, which may impact The Trade Desk's growth prospects [1].