The Trade Desk Boosts Stock With Strong Performance and AI Innovations

LOS ANGELES, CA — The Trade Desk, a leading independent demand-side platform, announced a significant rise in its third-quarter revenue, totaling $739 million, marking an 18% increase from the previous year. With a focus on innovative products like the AI-powered Kokai, the company is expanding its foothold in programmatic advertising.

Operating margins also saw improvement, with adjusted EBITDA reaching $317 million and a margin of 43%. The platform, processing over 20 million ad impressions per second, surpasses the transaction volume of major financial institutions like Visa and MasterCard.

Analysts are optimistic about the company’s growth prospects. TTD stock, which went public in 2016, has returned more than 1,200% to shareholders. However, with recent fluctuations, it offers buy opportunities, trading 70% below its peak.

The Trade Desk aims for continued substantial growth, anticipating 17% annual revenue increases. As of now, 85% of its clients have adopted Kokai as their primary tool, helping to meet its ambitious 2027 targets ahead of schedule. Valuations project potential growth, with stock predictions suggesting a rise from $42 to $52 in the coming years.

Vince Valentini, managing director of equity research at TD Cowen, praised TTD’s strategic moves, noting that its consistent innovations and expansion into international markets could favorably position the company in an evolving market. The future remains promising as programmatic advertising shapes the digital landscape.