Shares in Commercial counter (TTD) jumped on June quarter revenue that beat estimates as Internet TV drove growth and forecasts for TTD stock beat expectations.
The digital advertising company announced its second-quarter results after the market closed on Tuesday. Trade Desk shares climbed 36.8% to 74.57 in afternoon trading in the stock market today.
“The valuation of TTD shares remains the primary concern for investors as most recognize Trade Desk as the dominant independent DSP, with (data privacy) changes per Apple (AAPL) and Google increase market share of TTD platform,” Oppenheimer analyst Jason Helfstein said in a report.
Trade Desk Stock: Internet Cookies
Alphabet‘s (GOOGL) Google has postponed the phase-out of Internet cookies to 2024. After initially delaying the phase-out of third-party cookies on the Chrome web browser to 2023, Google announces that it will postpone the phase-out to 2024.
Cookies follow consumers around the web. Google will continue to test its targeted advertising technology called “Privacy Sandbox”. Trade Desk has developed an alternative technology.
Meanwhile, the Justice Department is preparing to sue Google in September on antitrust charges, claiming it unfairly dominates the digital advertising market, Bloomberg reported.
Additionally, Trade Desk earnings were 20 cents per share, up 11% from a year earlier. Revenue rose 35% to $377 million, the Ventura, Calif.-based company said. A year earlier, Trade Desk earnings were 18 cents a share on sales of $280 million.
Stock analysts at TTD had expected a profit of 20 cents a share on sales of $365 million for the period ended June 30.
“Management noted that more major brands are signing new or expanded major long-term agreements with the company, noting that trends give them confidence that they will gain market share in ‘any environment’. market,” RBC Capital analyst Matthew Swanson said in a note to clients.
TTD Stock: Guidance Top Views
The company said earnings before interest, taxes, depreciation and amortization, known as EBITDA, was $139 million. That was ahead of estimates by $123 million.
Strong growth in Internet TV advertising revenue was a positive for TTD stock. “With (Internet) television becoming increasingly ad-supported and more programmatic, we see TTD stock as the company best positioned to benefit from this change,” Susquehanna analyst Shyam Patil said in a statement. report.
Also, a commercial partnership with the distribution giant walmart (WMT) is also expected to drive growth in 2022.
Trade Desk forecast revenue of $385 million for the September quarter at the midpoint of the forecast, beating estimates of $382.2 million. Trade Desk said it expects adjusted EBITDA of $140 million versus estimates of $134 million.
The company’s automated platform allows brands and ad agencies to buy online and mobile ads in real time, rather than manually in advance. Additionally, Trade Desk helps clients leverage online data to improve their targeted advertising.
TTD stock had fallen nearly 40% in 2022. Additionally, Trade Desk stock holds a relative strength rating of 30 out of a possible 99, according to IBD Stock Checkup.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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