5 Ad-Tech Stocks to Buy as Industry Goes Through Upheaval

3. The Trade Desk, Inc. (NASDAQ:TTD)

Number of Hedge Fund Holders: 34

The Trade Desk, Inc. (NASDAQ:TTD) is a California-based technology company that operates a self-service on-demand platform, allowing users to create and optimize data-driven digital advertising campaigns across multiple ad formats and channels. The stock climbed 36% on August 10 as The Trade Desk, Inc. (NASDAQ:TTD) reported Q2 results that outperformed estimates, and analysts praised the company for its “exceptional” execution. For Q3 2022, The Trade Desk, Inc. (NASDAQ:TTD) expects a revenue of $385 million, ahead of the Wall Street consensus of $382.3 million. The company anticipates an EBITDA of about $140 million. This makes The Trade Desk, Inc. (NASDAQ:TTD) one of the top ad-tech stocks to buy. 

Wolfe Research analyst Gal Munda on August 16 initiated coverage of The Trade Desk, Inc. (NASDAQ:TTD) with a Peer Perform rating. The analyst said The Trade Desk, Inc. (NASDAQ:TTD) continues to defy the rest of the Advertising Technology industry. He contended that the stock’s performance remains excellent, but the market has recognized that as the shares gained more than 30% after posting Q2 results.

According to Insider Monkey’s second quarter data, 34 hedge funds were bullish on The Trade Desk, Inc. (NASDAQ:TTD), with collective stakes worth about $544 million. Zevenbergen Capital Investments is the largest position holder in the company, with 3.2 million shares worth $138 million. 

Here is what Rowan Street has to say about The Trade Desk, Inc.(NASDAQ:TTD) in its Q2 2022 investor letter:

“Jeff Green, Founder/CEO of Trade Desk

Jeff has been on a mission to make data-driven advertising as ubiquitous as electronic trading in equities ever since he founded the Trade Desk in 2009. Since day one, his goal was to create a platform where advertisers could value media inventory through data-driven decisions. With the ability to buy and sell advertising inventory electronically or programmatically, advertisers could use data to make better decisions on what, when, and whom to show an ad impression. Jeff owns 10% of the company. Jeff has built Trade Desk into a leader in ad tech, with a record of $6.2 billion spent on the platform in 2021, up 6x since 2016. Revenues are estimated to hit $1.6 billion in 2022, up almost 8x since 2016.”