Latest news with #Kokai
Yahoo
23-07-2025
- Business
- Yahoo
The Trade Desk vs. Alphabet: Which Ad-Tech Stock is the Smarter Buy?
Both The Trade Desk, Inc TTD and Alphabet Inc GOOGL play pivotal roles in the programmatic advertising ecosystem. TTD operates a leading demand-side platform (DSP), which helps advertisers focus on data-driven ads. Alphabet, on the other hand, dominates the digital ad space through its massive ecosystem comprising Google Search, YouTube and more. Since both firms have a massive exposure to the booming connected TV (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. The Case for TTD TTD is confident in its ability to outpace the market and seize future opportunities owing to solid execution across key initiatives, CTV, retail media, international expansion, Kokai, UID2 and OpenPath. The Kokai platform is now 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. 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. First-quarter revenues jumped 25% year over year while adjusted EBITDA was $208 million (34% margin). Video, which includes connected TV or CTV, represented a high 40 percent share of digital spend, while mobile had a mid-30 percent share. It expects at least $682 million in revenues for the second quarter of 2025, implying approximately 17% year-over-year growth. The stock's recent addition to the S&P 500 index has increased its visibility and potentially aided in attracting more institutional ownership. Nonetheless, increasing macroeconomic uncertainty and escalating trade tensions do not augur well for TTD, as these could squeeze ad budgets. The company 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. The Case for GOOGL Alphabet dominates digital ad space with its online ad platform. The main sources of its ad revenues are Google Search, YouTube ads, Google Network, Google AdSense and Google Ad Manager. The company's ginormous ad technology infrastructure integrates both DSP and supply-side platforms, aids advertisers in reaching their target across the web, mobile apps, and CTV. Alphabet's efforts to infuse AI in Search are driving top-line growth. Circle to Search now features AI Mode. AI Mode is also accessible through Lens within the Google app on both Android and iOS devices. Circle to Search is now available on 300 million-plus Android devices. Earlier, Alphabet announced the launch of Offerwall. It is a flexible tool designed to aid publishers earn revenue while offering their audience choices. Offerwall is now available in Ad Manager. The company also rolled out new features, which include Optimize. Optimize utilizes AI to decide the best time to display the Offerwall for each visitor, thereby maximizing engagement and revenues. In 2024, Google advertising revenues increased 11.2% over 2023 to $264.59 billion, driven by a 13.2% increase in Google Search & other revenues and a 14.7% increase in YouTube ads. In 2024, ad revenues accounted for 75.6% of the total revenues. In the first quarter of 2025, Google advertising revenues rose 8.5% year over year to $66.885 billion and accounted for 74.1% of total revenues. Search and other revenues were up 9.8% and YouTube's advertising revenues improved 10.3% year over year. Alphabet's ad business faces several headwinds. Regulatory scrutiny is intensifying, particularly in the United States and Europe. The landscape has become increasingly competitive with both small and established players aggressively vying for ad dollars. Privacy changes such as the depreciation of third-party cookies and Apple's iOS tracking restrictions are also reforming the digital ad landscape. Nonetheless, business diversification, especially cloud and AI, with stupendous financial resources, gives it an edge and reduces reliance on one segment. Alphabet generated $36.15 billion of cash from operations in the first quarter of 2025. Cash equivalents and marketable securities were $95.328 billion at the quarter-end. Share Performance for TTD & GOOGL Over the past month, TTD and GOOGL have gained 13.7% and 14.8%, respectively. Image Source: Zacks Investment Research Valuation for TTD & GOOGL Valuation-wise, TTD is overvalued, as suggested by the Value Score of F, while GOOGL has a Value Score of C. In terms of the forward 12-month price/earnings ratio, TTD shares are trading at 41.06X, higher than GOOGL's 19.35X. Image Source: Zacks Investment Research How Do Zacks Estimates Compare for TTD & GOOGL? Analysts have made no revisions for TTD's bottom line for the current year in the past 60 days. Image Source: Zacks Investment Research For GOOGL, there is a marginal upward revision. Image Source: Zacks Investment Research TTD or GOOGL: Which Is a Better Pick? TTD and GOOGL currently carry a Zacks Rank #3 (Hold) each. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. While both The Trade Desk and Alphabet are benefiting from the rise in CTV and retail media, Alphabet stands out due to its broader ad ecosystem, stronger financials, and diversified revenue streams. Its massive scale, robust AI integration, and better valuation make it a more resilient long-term investment. 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 Alphabet Inc. (GOOGL) : Free Stock Analysis Report The Trade Desk (TTD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
15-07-2025
- Business
- Yahoo
Why The Trade Desk Stock Skyrocketed Tuesday Morning
The Trade Desk is a leader in the digital advertising field. It boasts a long track record of growth. The stock will be joining the S&P 500 index on Friday. These 10 stocks could mint the next wave of millionaires › Shares of The Trade Desk (NASDAQ: TTD) charged higher by as much as 14% on Tuesday morning. As of 11:45 a.m. ET, the stock was still up by 9.6%. The catalyst that sent the digital advertising stock surging was the announcement that the company would be joining one of the premier stock market indexes. After the market closed on Monday, S&P Global revealed that The Trade Desk would be joining the S&P 500. The stock will be replacing ANSYS before the market opens on Friday. In the press release that provided details of the reshuffling, S&P Global noted, "S&P constituent Synopsys will acquire ANSYS in a deal expected to be complete on July 17." Stocks often rise when they initially join a benchmark index because mutual funds and exchange-traded funds based on that index must buy shares of the new component to keep their holdings aligned with it. In isolation, the fact that The Trade Desk is joining the S&P 500 is no reason to buy the stock, but there are plenty of other reasons to be bullish about the programmatic advertising leader. The Trade Desk has a long track record of innovation, as evidenced by the release of Kokai, a platform infused with artificial intelligence (AI) designed to facilitate digital ad buying. That system can access more than 13 million ad impressions each second, providing actionable insights for advertisers within milliseconds. A rare misstep in transitioning customers to Kokai in the fourth quarter of 2024 caused the company to miss its guidance for the first time in 33 quarters, which sent the stock careening lower. However, the company has since returned to form, generating robust growth in 2025's first quarter. Trading at 34 times next year's expected earnings, The Trade Desk is significantly discounted relative to its average multiple of 46 over the past three years. Its ascension to the S&P 500 only solidifies the opportunity, as evidenced by its long track record of growth, industry-leading technology, and discounted price tag. That's why The Trade Desk is a buy. The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now. 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 $680,559!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,005,670!* Now, it's worth noting Stock Advisor's total average return is 1,053% — a market-crushing outperformance compared to 180% 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 15, 2025 Danny Vena has positions in The Trade Desk. The Motley Fool has positions in and recommends Synopsys and The Trade Desk. The Motley Fool recommends Ansys. The Motley Fool has a disclosure policy. Why The Trade Desk Stock Skyrocketed Tuesday Morning was originally published by The Motley Fool 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
Forbes
26-06-2025
- 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
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
23-06-2025
- 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
