Latest news with #DigitalAdvertising
Yahoo
2 hours ago
- Business
- Yahoo
The Trade Desk (TTD) Announces Financial Results for Q2 2025
The Trade Desk, Inc. (NASDAQ:TTD) is one of the Best Cloud Computing Stocks to Invest in Now. The company announced financial results for Q2 2025, with revenue increasing to $694 million, up by 19% YoY, as the company continues to outpace the broader digital advertising market. The Trade Desk, Inc. (NASDAQ:TTD) highlighted that CTV remains its fastest-growing channel and there are no signs of slowing down. Notably, with its leadership in CTV and other areas like retail media, digital audio, identity, measurement, and data, the company has been winning more business with new and existing customers. A large array of computer screens and tech equipment representing the technology company's self-service cloud-based platform. The overall growth in the cloud computing industry is expected to fuel growth for The Trade Desk, Inc. (NASDAQ:TTD) by enabling rapid data processing, advanced AI capabilities, and scalable infrastructure. Notably, these are important for delivering real-time, data-driven advertising. With companies shifting their marketing and ad operations to the cloud, The Trade Desk, Inc. (NASDAQ:TTD) can enhance its platform's reach. Kokai continues to support advertisers in driving better results through integrating more data, utilising AI as a co-pilot, as well as unlocking the full potential of the first-party data. Parnassus Investments, an investment management company, released its Q1 2025 investor letter. Here is what the fund said: 'The Trade Desk, Inc. (NASDAQ:TTD), a digital advertising technology platform, detracted after missing guidance for the first time since going public. While the company faces concerns over rising competition from Amazon, we maintain our conviction in the company's leading technology and its independent platform.' The Trade Desk, Inc. (NASDAQ:TTD) provides self-service cloud-based ad-buying platform. 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 best short-term AI stock. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Globe and Mail
04-08-2025
- Business
- Globe and Mail
Prediction: This Unstoppable Stock Will Join Nvidia, Microsoft, and Apple in the $3 Trillion Club Before 2029
Key Points Artificial intelligence (AI) is helping Meta Platforms unlock greater efficiency. The company's digital advertising business is benefiting from these next-generation algorithms. Meta has other potential growth drivers that could fuel the next phase of its growth. 10 stocks we like better than Meta Platforms › There's been an undeniable shift over the past 20 years. During that time, technology companies have climbed the ranks of the world's most valuable companies, which was once the exclusive domain of industrial and energy concerns. For example, in 2005, ExxonMobil and General Electric were top of the class when measured by market cap, valued at $375 billion and $362 billion, respectively. Two decades later, it's the world's technology bellwethers that lead the pack. Topping the charts are three of tech's most recognizable names, which need little introduction. Artificial intelligence (AI) chipmaker Nvidia currently leads the pack at $4.3 trillion (as of this writing), with its stock recently hitting new all-time highs. Software giant Microsoft also notched a new record this week, cracking the $4 trillion mark. Rounding out the top three is iPhone maker Apple, with a market value of $3.1 trillion. With a market cap of $1.9 trillion, it might seem premature to suggest that Meta Platforms (NASDAQ: META) has been earmarked for admission in the $3 trillion club. However, the company's recent performance has been exemplary, and the stock has soared 33% so far this year (as of this writing), following 65% gains in 2024. Its winning streak appears poised to continue. The ever-increasing reach of its social media platform, ongoing leverage of digital advertising, and novel strategy for leveraging AI could combine to help Meta earn its membership in this exclusive fraternity. A digital advertising powerhouse The dawn of generative AI in late 2022 marked a pivotal point in the evolution of technology, and companies that were able to capitalize on that opportunity have reaped the rewards. Meta had already established expertise in the use of algorithms to advance its business, and generative AI took that to the next level. The company not only uses AI to surface more relevant content on its social media platforms but also provides a suite of AI-powered tools to assist merchants who use its digital advertising services. The results have been profound. In the second quarter, Meta's revenue of $47.5 billion jumped 22% year over year, driving diluted earnings per share (EPS) of $7.14 up 38%. CEO Mark Zuckerberg revealed that AI is "unlocking greater efficiency and gains across our ads system ... [driving] roughly 5% more ad conversions on Instagram and 3% on Facebook." He went on to say that "AI is significantly improving our ability to show people content that they're going to find interesting and useful." Meta's consistent user growth continues to fuel its success, as those who used one of Meta's family of social media platforms -- Facebook, Instagram, WhatsApp, or Threads -- increased 6% year over year to 3.48 billion, so its reach is unrivaled. This captive audience forms the basis of the company's digital advertising success, making it part of a triumvirate in the space. Alphabet 's Google controlled an estimated 26% of the U.S. digital advertising market in 2024, while Meta gained ground with 21%, and Amazon took 14%, according to data compiled by business intelligence platform eMarketer. Meta's digital marketing is inseparable from its social media platforms, fueling its inexorable rise. The AI wildcard As the world's largest cloud infrastructure operators, Amazon Web Services (AWS), Microsoft Azure, and Google Cloud have a target market for their AI services, a luxury Meta doesn't have. To capitalize on the opportunity, the company tapped its treasure trove of data and trained a suite of homegrown, open-source, industry-favorite large language models (LLMs). The group, dubbed LLaMA (large language model Meta AI), is available via all the major cloud platforms and powers the Meta AI chatbot. Meta isn't stopping there. The company has recently been on a hiring spree, reportedly spending billions of dollars to assemble the top talent in the field of AI to develop the first "personal superintelligence." Meta has expanded beyond its social media roots into virtual reality (VR) and the metaverse, with AI being the company's latest area of interest. While Meta hasn't yet been able to significantly monetize these ambitions, Zuckerberg believes they hold the key to its future growth prospects and will eventually help boost profits. The path to $3 trillion Meta has a market cap of roughly $1.96 trillion (as of this writing), so it will take a stock price increase of roughly 53% to increase its value to $3 trillion. According to Wall Street, Meta is expected to generate revenue of $195 billion in 2025, giving the stock a forward price-to-sales (P/S) ratio of 10. Assuming its P/S remains constant, Meta would need revenue of roughly $299 billion annually to support a $3 trillion market cap. Wall Street is currently forecasting growth for Meta of more than 12% annually over the coming five years. If the company attains that target, it could achieve a $3 trillion market cap as soon as 2029. For context, Meta has grown its annual revenue by 840% over the past decade and by 22% in the most recent quarter, and frequently surpassed Wall Street's growth expectations -- so those estimates are likely conservative. Furthermore, at 30 times earnings, Meta's valuation is in line with that of the S&P 500 -- yet has generated stock price gains of 719% over the past 10 years, far exceeding the S&P 500, which rose just 203%. That makes a compelling case that Meta Platforms is an unqualified buy. Should you invest $1,000 in Meta Platforms right now? Before you buy stock in Meta Platforms, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Meta Platforms wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,820!* Now, it's worth noting Stock Advisor's total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Danny Vena has positions in Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends GE Aerospace and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Yahoo
25-07-2025
- Business
- Yahoo
3 stats from Google's Q2 show how it is weathering advertising turmoil
This story was originally published on Marketing Dive. To receive daily news and insights, subscribe to our free daily Marketing Dive newsletter. Digital advertising is sitting at a point of uncertainty as tariffs roil the economy and artificial intelligence (AI) disrupts the ecosystem. Those threats didn't ding Google's performance in Q2 2025. Search and other, the company's largest segment, increased revenue nearly 12% year over year to $54.2 billion while YouTube notched a 13% YoY gain to $9.8 billion. Overall Q2 ad revenue came in at $71.3 billion, up 10.4% over the year-ago period, according to an earnings report from parent Alphabet. Search experienced growth 'across all verticals,' CFO Anat Ashkenazi said on a call discussing the results with analysts, led by the retail and financial services industries. Google also continued to see consumer traction for its efforts to inject more generative AI features into the search experience. By the numbers $54.2B Q2 ad revenue for Google's key search and other segment, which saw growth "across all verticals." AI Overviews have yet to dent monetization 2M The number of advertisers using Google's generative AI tools to run ads. That base is up 50% over the same period last year 40B Hours of YouTube sports content now watched annually. Google is making live sports a bigger priority for the video platform AI Overviews, text boxes that streamline answers to queries using generative AI, are drawing over 2 billion monthly active users (MAUs). A separate AI Mode for delving into longer-form, complex searches has over 100 million MAUs in the U.S. and India, where it is currently available. 'We see monetization at approximately the same rate, which gives us actually a really strong base on which we can then innovate and drive actually more innovative and new and next-generation ad formats,' said Chief Business Officer Philipp Schindler when asked by an analyst about the impact of AI Overviews on search advertising. Google has worked to put more AI tools in the hands of advertisers as well, including an AI Max for search suite of solutions that launched in May. Executives claim the features typically drive 14% more conversions for brands. Beyond campaign optimization, more companies are adopting Google's generative AI products for advertising creative. The number of advertisers using Google's AI-powered asset generation tools is up 50% over last year to 2 million, according to Schindler. 'Google's AI-powered products for advertisers, including AI Max for Search campaigns, Smart Bidding Exploration, Demand Gen, and Asset Studio are performing as expected, though they force advertisers to cede control and transparency in exchange for performance,' said Forrester Senior Analyst Nikhil Lai in emailed comments. 'Nonetheless, they'll continue being adopted by agencies and brands seeking more yield from crunched budgets.' YouTube was also cited as a point of strength in Q2 as the video platform becomes a more serious player in TV and as its TikTok lookalike, called Shorts, advances its approach to monetization and generates over 200 billion daily views. Shorts in the U.S. are now earning as much ad revenue per hour watched as traditional in-stream video on YouTube, Google CEO Sundar Pichai said. Executives referenced Nielsen data that show YouTube has become the top player in streaming, momentum that Google is trying to extend into areas like live sports. YouTube will broadcast its first exclusive NFL game in September following season kick-off (its connected TV service, YouTube TV, also carries NFL Sunday Ticket). Consumers watch over 40 billion hours of sports content via YouTube annually, per Pichai. Many questions still hang over Google's business, which is contending with an antitrust crackdown, rising competition from AI rivals like ChatGPT and the potential for more concrete impacts from the trade war, should it dent advertiser appetites. Google is also heading into a period where it will lap a deluge of political ad spending from 2024, which could lead to unfavorable comparables. 'I think it's really too early to comment on anything [happening] in the second half of the year,' said Schindler. Recommended Reading Google's ad business remains robust despite macro, regulatory threats 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
18-07-2025
- Business
- Yahoo
The Trade Desk Set to Join S&P 500 Today
A new company is set to join the benchmark S&P 500 Index. Digital advertising company The Trade Desk (TTD) is joining the benchmark index today, S&P Dow Jones Indices has said. It replaces Ansys, which on Thursday was formally acquired by chip design software provider Synopsys (SNPS). News that The Trade Desk would join the index has helped lift its shares since the change was announced late Monday. The stock, which is down roughly 30% this year, has risen about 8% between Monday's close and yesterday's. Inclusion in the S&P 500 is broadly seen as bullish for companies, in part because it means other instruments that track the index will buy shares of companies that are added to it. The Trade Desk's market capitalization is near $40 billion, according to Visible Alpha data. "Our inclusion in the S&P 500 is testament to the value and innovation we have delivered to the digital advertising industry since our founding, 16 years ago,' said CEO Jeff Green on Thursday. Datadog (DDOG) joined earlier this month, replacing Juniper Networks after it was acquired by Hewlett Packard Enterprise (HPE). Read the original article on Investopedia Sign in to access your portfolio
