Ing 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 ing 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 ly to benefit significantly from the shift of broadcast and cable viewers to ing services. The Trade Desk (TTD 1.
07%) is one of them, and its stock is on sale. The Trade Desk has a tremendous future 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 grammatic advertising purchases on behalf of its clients.
It works this: When a website, ing 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 viding its clients with a wealth of useful data. Image source: Getty Images. The grammatic 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 grammatic. For perspective, global advertising spending is expected to hit $1 trillion this year.
As shown below, grammatic advertising spending is expected to reach $299 billion this year in the U. Alone and is jected 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. Is The Trade Desk a buy now.
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 nology companies) is 82% off its five-year average: TTD PS Ratio data by YCharts The ratio drops under 13 on a forward basis.
The market is pricing The Trade Desk a distressed, but it is far from that. 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. 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.
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 s available decreases, making existing s more valuable.
In short, The Trade Desk is growing rapidly, in great financial shape, and considerably undervalued, making it look a great buy for investors right now.
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.