The Trade Desk, Inc. (TTD): A Bull Case Theory 

We came across a bullish thesis on The Trade Desk, Inc. on Global Equity Briefing’s Substack by Ray Myers and Sergey. In this article, we will summarize the bulls’ thesis on TTD. The Trade Desk, Inc.’s share was trading at $50.73 as of October 14th. TTD’s trailing and forward P/E were 61.30 and 38.02 respectively according to Yahoo Finance.

The Trade Desk (TTD) remains the leading independent force in programmatic advertising, anchored by its AI-driven Kokai platform, strong CTV partnerships, and a customer retention rate consistently above 95%. Operating within a $1 trillion global advertising market, TTD has carved out a dominant position as a demand-side platform, serving advertisers across digital channels with AI-powered targeting and data-driven optimization. The company benefits from a robust economic moat, supported by economies of scale, a self-reinforcing network effect, proprietary IP, high switching costs, and strong brand recognition.

TTD’s Unified ID 2.0 and Kokai platform, now handling two-thirds of client spend, enhance privacy-compliant targeting and measurable outcomes, while Deal Desk, OpenPath, and retail media integrations expand performance capabilities. Key partnerships with Disney, NBCU, Walmart, Roku, and Netflix strengthen its CTV leadership, with international growth now representing 14% of total spend. Revenue growth, however, has decelerated from 25.5% YoY to 18.6% in Q2 2025, raising questions about momentum despite strong Q1 outperformance. TTD maintains a healthy balance sheet with $1.68 billion in cash and minimal debt, supporting strategic share repurchases and continued innovation.

The stock trades near historical lows, with forward EV/Sales of 8.1x and P/E of 27.7x, suggesting undervaluation relative to peers given robust free cash flow and growth potential. Key catalysts include continued adoption of Kokai, acceleration in CTV and retail media spend, and international expansion. While revenue deceleration introduces caution, TTD’s market leadership, operational scale, and innovation-driven moat provide a compelling risk/reward profile, with Q3 results likely to clarify whether growth momentum is stabilizing and the stock’s valuation remains attractive.

Previously we covered a bullish thesis on The Trade Desk, Inc. (TTD) by FckYouMoney in May 2025, which highlighted its market leadership, 95%+ customer retention, strong revenue growth, and undervaluation from short-term setbacks. The stock has depreciated approximately 8.6% since coverage. The thesis still stands as TTD’s growth and cash flow remain intact. Ray Myers and Sergey share a similar perspective but emphasize the economic moat, Kokai adoption, and international expansion.

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Disclosure: None.