AI, Ad Spend, and Streaming: TTD Is Still a Top Pick

When we first launched Derby City Daily in February of 2023, the LikeFolio team – Landon, Megan, and I – hand-picked three stocks we saw as fantastic moneymaking opportunities.

• My pick was streaming ad giant The Trade Desk (TTD).
• Landon went with computer chip pioneer Nvidia (NVDA).
• And Megan chose Zurich-based shoemaker On Holding (ONON).

We chose those picks carefully, based on LikeFolio data that showed each gaining momentum in demand, sentiment, and overarching macro trends. And each of them have soared in the year since:

• TTD: +53%
• NVDA: +296%
• ONON: +50%

Today, we’re here to report on TTD – and show you why we’re more bullish than ever on this name…

Why We’re More Bullish Than Ever On TTD

Our long-term bullish thesis for TTD is predicated on the fact that consumers watching content are increasingly streaming versus utilizing traditional linear methods, like cable.

Not only is streaming growing, but ad-supported streaming is also on the rise. Just look at Netflix (NFLX), opting into ad-supported models (with great success).

By 2028, ad-supported streaming services – including Free Ad-Supported Streaming TV (FAST) and Advertising Video On Demand (AVOD) – are projected to capture 25% share of the streaming market.

The money will flow here and through TTD as a result.

For scale, forecasts suggest that the worldwide user base for over-the-top (OTT) platforms will expand to 3.71 billion in 2024, with expected global revenues from OTT services reaching $295.40 billion.

TTD benefits due to its position in media buying, enabling brands and agencies to connect to their ideal audience via a wide range of partners – such as Disney (DIS) and AMC – while also leveraging first-party data.

At 80% positive, LikeFolio data places TTD at the top of the list when it comes to overall Consumer Happiness compared to digital advertising peers large and small.

That’s an impressive level of satisfaction for any company tracked in our database.

External research from Forrester concurs that The Trade Desk leads versus all other competition measured when it comes to its strategy and offerings for users:

That’s against mega-cap tech peers like Adobe (ADBE), Microsoft (MSFT), Amazon.com (AMZN), and Google (GOOGL).

Part of this satisfaction is attributed to TTD’s successful integration of artificial intelligence (AI) via its Kokai platform.

On its last earnings call, The Trade Desk noted:

“Our platform now sees about 15 million advertising impression opportunities per second. And we effectively stack ranked all of those impressions better than anyone else in the world based on probability of performance to any given advertiser, without the bias or conflict of interest that plagued most walled gardens. With UID2, Kokai, and advances in AI in our platform, we now do this more effectively than ever before. And our work in areas such as CTV, retail data, and identity are helping build a new identity and authentication fabric for the open Internet.”

MegaTrends members have traded TTD multiple times over with stellar results: +13%, +86%, and 127%. The secret? Our Social Heat Score device – which harnesses the full power of the LikeFolio Data Engine to signal which stocks are due for a breakout and when with remarkable accuracy. (You can see for yourself right here.)

Last quarter, TTD shares soared 18% on a strong report and upbeat guidance. And on the web side of things, new and returning users to TTD’s site are rising year over year.

Bottom line: We expect The Trade Desk to continue to benefit from large-scale consumer trends (shift to OTT streaming, AI leverage), ad spend, and best-of-breed status.

Until next time,

Andy Swan
Founder, LikeFolio

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