5 Best Advertising Stocks to Buy Now

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

Number of Hedge Fund Holders: 35    

The Trade Desk, Inc. (NASDAQ: TTD) is a California-based technology firm. It was founded in 2009 and is placed fourth on our list of 10 best advertising stocks to buy now. The firm primarily runs a cloud-based platform which offers businesses the ability to manage advertising campaigns by using data-driven techniques. It offers integration of ideas for display, video, audio, in-app, native and social, and other forms of marketing. 

On April 13, The Trade Desk, Inc. (NASDAQ: TTD) stock surged more than 1.5% after investment advisory Needham maintained a Buy rating on the firm with a price target of $1,000, predicting 40% upside potential. 

At the end of the fourth quarter of 2020, 35 hedge funds in the database of Insider Monkey held stakes worth $1.1 billion in the firm, up from 23 in the preceding quarter worth $510 million.

In one of its investor letters, Polen Capital Management highlighted a few stocks and Trade Desk Inc. (NASDAQ:TTD) is one of them. Here is what Polen Capital said:

“The Trade Desk was a top contributor in the quarter. The company operates the largest programmatic advertising platform globally that enables data-driven digital advertising for ad agencies and brands. The massive shift to digital media consumption combined with the increasingly fragmented nature of consumers’ media behavior make it harder for companies to reach the right consumers in the right places. Programmatic advertising/ad buying helps companies do this more successfully. Digital media is bought in an automated fashion and machine-driven. The advertiser selects the impressions they want to buy, not the publisher. This method helps companies reach more consumers and engage with them across different touchpoints with ads that are more targeted and relevant. Additionally, companies receive more analytics to help them make decisions and measure results.

The Trade Desk has been able to scale its business, and management has been able to balance both growth and profitability. We believe that COVID-19 is a catalyst for advertisers to move in The Trade Desk’s direction. Given the increasing importance of data-driven advertising, especially in the current environment, we believe the company’s competitive position has been enhanced as a result of the pandemic.”