Core Insights - The Trade Desk (TTD) reported strong Q4 2025 results with revenues increasing by 14% year over year to $847 million, or 19% growth when excluding political spending [1][11] - Video, including CTV, constitutes 50% of TTD's business, while audio is emerging as a significant growth driver, accounting for 6% of the business and growing at a rate higher than any other channel [1][2] Revenue Growth and Projections - TTD's audio segment is benefiting from increased consumer engagement with music and podcasts, creating a larger market for digital audio ads [2] - The company anticipates at least $678 million in Q1 revenues, indicating a 10% year-over-year growth, despite challenges in the CPG and auto sectors [4][11] Competitive Landscape - TTD faces intense competition in the digital advertising space, particularly from Amazon's expanding DSP business and independent ad-tech companies like Magnite [5][6] - Amazon Ads generated $21.3 billion in Q4 revenues, up 22% year over year, driven by its comprehensive ad offerings [7] Business Strength and Challenges - TTD's audio growth, combined with CTV strength and AI-driven optimization, positions the company well for future growth, although audio alone may not significantly impact overall revenue growth in the short term [3][4] - TTD's shares have declined by 34.1% in the past month, contrasting with a 7.6% decline in the Internet Services industry [10] Valuation Metrics - TTD's shares are currently trading at a forward price/earnings ratio of 11.62X, which is lower than the Internet Services industry's ratio of 25.93X [12] - The Zacks Consensus Estimate for TTD's earnings for 2026 has remained unchanged over the past 60 days [13]

Key Takeaways Trade Desk launched Ventura Ecosystem to enhance transparency and efficiency in CTV ads.TTD Q3 revenue grew 18% to $739M, driven by exceptional CTV strength.Trade Desk guides Q4 revenue of at least $840M and EBITDA near $375M.The Trade Desk, Inc. (TTD) has expanded its push to reshape connected TV (CTV) advertising with the launch of the Ventura Ecosystem, an industry-wide collaboration built to foster greater transparency, fairness and revenue efficiency in streaming. Trade Desk’s Ventura is ...

Core Insights - The Trade Desk, Inc. (TTD) is set to report its fourth-quarter 2025 results on February 25, with a consensus estimate for earnings at 59 cents and total revenues at $841.9 million, reflecting a 13.6% year-over-year increase [1][10] Revenue and Earnings Expectations - TTD anticipates revenues to be at least $840 million, with an 18.5% year-over-year growth rate when excluding U.S. political ad spend from the prior year [2] - The company projects an adjusted EBITDA of $375 million [2] - TTD has beaten the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 8.4% [2] Business Performance Factors - Continued momentum in Connected TV (CTV) is expected to support TTD's top-line performance, as CTV is the fastest-growing segment in digital advertising [5] - Management noted a rapid transition towards biddable CTV, which is anticipated to become the default buying model, offering greater flexibility and control for advertisers [6] - Other growth drivers include retail media, international expansion, and the Kokai platform, with 85% of clients using Kokai as their default experience [7] Competitive Landscape - TTD faces significant competition from major players like Amazon and Alphabet, particularly in the CTV space [10][12] - The digital advertising market is characterized as a buyer's market, leading to persistent pricing and margin pressures [13] - TTD's stock has declined 51.4% over the past six months, underperforming the Internet-Services industry and the S&P 500 [16] Valuation Metrics - TTD's stock is trading at a forward 12-month price/earnings ratio of 11.82X, which is lower than the industry average of 25.3X [20] - Competitors like Amazon and Alphabet are trading at higher forward price/earnings multiples of 25.65X and 25.7X, respectively [21] Strategic Initiatives - TTD's initiatives such as OpenPath, Deal Desk, Pubdesk, and OpenAds aim to enhance transparency and supply-chain efficiency by connecting advertisers directly to publishers [8] - The company is focusing on embedding AI across its portfolio, which may increase capital expenditures and operational costs [14]

Core Insights - Appian (APPN) reported quarterly earnings of $0.15 per share, exceeding the Zacks Consensus Estimate of $0.09 per share, compared to break-even earnings per share a year ago, representing an earnings surprise of +59.57% [1] - The company achieved revenues of $202.87 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 7.28% and showing a year-over-year increase from $166.68 million [2] - Appian has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] Earnings Outlook - The sustainability of Appian's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3] - The current consensus EPS estimate for the upcoming quarter is $0.15 on revenues of $186.08 million, and for the current fiscal year, it is $0.80 on revenues of $794.58 million [7] Industry Context - The Internet - Software industry, to which Appian belongs, is currently ranked in the top 36% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Appian's stock performance [5]

Core Insights - Magnite, Inc. (NASDAQ:MGNI) is recognized as one of the 14 oversold value stocks currently worth investing in [1] Group 1: Partnerships and Collaborations - On January 22, 2026, Magnite partnered with MNTN to allow MNTN advertisers to target audiences across live sports and high-engagement streaming content, with 97% of MNTN's advertisers being new to TV [2] - On January 6, 2026, Magnite announced a partnership with Cognitiv to integrate deep learning models into its ClearLine solution, enhancing real-time curation of premium video inventory [3] Group 2: Strategic Positioning - These partnerships position Magnite at the forefront of performance-driven advertising across streaming platforms, combining premium content access with AI-powered targeting and analytics [4] - Magnite offers automated solutions for buyers and sellers across various media platforms, including web and mobile [4]

Core Insights - The Trade Desk (TTD) has experienced a significant decline in stock price, dropping 26.7% over the past month, reflecting investor concerns about its performance in the digital ad tech space [1][7] - The broader Zacks Internet Services industry has also faced challenges, with a 4% decline, while the Computer & Technology sector and S&P 500 have lost 2.9% and 0.9%, respectively, indicating a widespread downturn in the digital advertising ecosystem [4] Company-Specific Challenges - TTD's recent sell-off is attributed to rising costs, slowing revenue growth, macroeconomic volatility, and increasing competition [6][8] - Total operating costs (excluding stock-based compensation) surged 17% year over year to $457 million, driven by investments in enhancing platform capabilities [8] - The company faces macro-driven ad spend caution, which could pressure revenue growth due to reduced programmatic demand amid higher interest rates and geopolitical instability [9] Competitive Landscape - TTD's strongest long-term growth driver, Connected TV (CTV), is becoming increasingly competitive, with rivals like Amazon expanding their demand-side platform (DSP) business [10] - Competition from major players such as Meta Platforms, Apple, Google, and Amazon, as well as smaller companies like Magnite and PubMatic, is intensifying in the CTV and retail media spaces [10] - Regulatory changes, including the deprecation of cookies and tightening data-privacy laws, present ongoing challenges for TTD [11] Long-Term Catalysts - Despite current challenges, TTD has several long-term growth catalysts, including the rise of CTV, expanding retail media networks, and the adoption of its AI-powered platform, Kokai, which is used by 85% of clients [14] - Kokai has demonstrated significant performance improvements, delivering 26% better cost per acquisition, 58% better cost per unique reach, and a 94% better click-through rate compared to its previous platform [14] - The acceleration of retail media is driven by demand for measurable outcomes, with TTD's platform integrating retail data with identity solutions for precise targeting [16] Valuation Metrics - TTD's stock is currently trading at a price/book multiple of 5.03X, compared to the industry's 7.84X, indicating a relative undervaluation [18] - Competitors such as Amazon, Magnite, and PubMatic are trading at multiples of 5.47X, 2.01X, and 1.23X, respectively [19]

Core Insights - Atlassian reported quarterly earnings of $1.22 per share, exceeding the Zacks Consensus Estimate of $1.12 per share, and showing an increase from $0.96 per share a year ago, resulting in an earnings surprise of +9.19% [1] - The company achieved revenues of $1.59 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 3.00%, and up from $1.29 billion year-over-year [2] Financial Performance - Over the last four quarters, Atlassian has consistently surpassed consensus EPS estimates, achieving this four times [2] - The company has also topped consensus revenue estimates four times in the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is $1.29, with expected revenues of $1.64 billion, and for the current fiscal year, the estimate is $4.78 on $6.3 billion in revenues [7] Market Position - Atlassian shares have declined approximately 35.2% since the beginning of the year, contrasting with the S&P 500's gain of 0.5% [3] - The Zacks Industry Rank places the Internet - Software sector in the top 38% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] Future Outlook - The sustainability of Atlassian's stock price movement will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The estimate revisions trend for Atlassian was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6]

Group 1 - Magnite Inc (NASDAQ:MGNI) is recognized as one of the 10 cheap stocks with significant upside potential, with a current price target of $39, indicating a potential upside of 153.08% [1] - The company's stock jumped 14.31% following a partnership with MNTN, which will allow advertisers to access high-engagement programs for the first time, creating new revenue opportunities for publishers [2] - Magnite is the world's largest independent sell-side advertising platform, enabling publishers to monetize their content across various devices, including Connected TV, mobile, and desktops [3] Group 2 - The partnership with MNTN is expected to attract performance-driven marketers to streaming platforms, enhancing revenue opportunities for publishers and introducing a new class of advertisers [3]

Core Insights - MNTN has partnered with Magnite to allow advertisers to reach audiences during live sports and high-engagement programming for the first time [1][2][3] Group 1: Partnership Details - The partnership enables MNTN advertisers, 97% of whom have never advertised on TV before, to engage with audiences watching live content from major publishers [2] - The collaboration allows for high-impact ad formats native to streaming, including home screen placements and pause ads [2][3] - This integration aims to create new revenue opportunities for publishers and enhance the effectiveness of streaming TV advertising [3] Group 2: Market Context - Streaming has surpassed linear TV viewership, increasing demand for premium live content from both advertisers and consumers [2] - Live sports and events are highlighted as powerful moments for advertising, with real-time targeting and measurement capabilities provided by streaming [3] Group 3: Company Background - MNTN is recognized for its innovative approach to Connected TV advertising, making it easier for brands to run TV ads and drive measurable results [5] - Magnite is the largest independent sell-side advertising company, facilitating monetization across various formats including CTV and online video [6]

Core Insights - The Trade Desk, Inc. (TTD) launched Kokai in 2023, a next-generation platform utilizing Koa AI to enhance programmatic advertising through advanced analytics and integrations, potentially reshaping TTD's revenue and competitive position [2][4] Group 1: Kokai Platform Features and Adoption - Kokai employs a distributed AI architecture with specialized models for various functions, improving efficiency and reliability in ad performance [3] - Nearly all TTD clients have tested Kokai, with 85% adopting it as their default platform, leading to significant performance improvements: 26% better cost per acquisition, 58% better cost per unique reach, and a 94% higher click-through rate [4][10] - Successful case studies include Specsavers reducing appointment booking costs by 43% and Danone increasing conversion rates by one-third for its Actimel brand [5] Group 2: Market Position and Competitive Landscape - TTD is well-positioned for market share growth in 2026, supported by Kokai's adoption, growth in connected TV (CTV) and retail media, and strong client retention, despite competition from Magnite, Inc. and Taboola.com Inc. [6] - Magnite reported a strong third quarter with 18% CTV growth, driven by its SpringServe ad server, while Taboola's new platform, Realize, enhances performance advertising capabilities across the open web [7][8] Group 3: Financial Performance and Valuation - TTD shares have declined by 71.7% over the past year, contrasting with the 61.6% growth of the Zacks Internet – Services industry [11] - TTD's forward price/earnings ratio stands at 26.86X, lower than the industry average of 29.52X [12] - The Zacks Consensus Estimate for TTD's earnings for 2025 has remained stable over the past 60 days [13]