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Can Trade Desk Sustain Double-Digit Revenue Growth Amid Headwinds?
ZACKS· 2025-07-10 16:00
Key Takeaways Higher operating costs and macro uncertainty may hurt TTD's profitability and demand. Higher operating costs and macro uncertainty may hurt TTD's profitability and demand. TTD expects a 38% adjusted EBITDA margin, aided by AI tools like Kokai and growing CTV momentumThe Trade Desk, Inc. (TTD) expects at least $682 million in revenues for the second quarter of 2025, implying approximately 17% year-over-year growth. It is to be noted that in the first quarter, the company recorded 25% year-ove ...
AppLovin's Strategic Shift Fuels Omnichannel Advertising Growth
ZACKS· 2025-07-08 15:46
Key Takeaways APP is shifting from mobile-first to omnichannel ads by expanding into CTV, web and e-commerce. The Wurl acquisition enhances APP's AI-driven monetization engine across new digital ad verticals. APP stock is up 46.5% in 3 months, outpacing the industry's 42.7% gain amid rising earnings estimates.AppLovin Corporation (APP) is accelerating its transformation from a mobile-first advertising platform into a diversified digital advertising powerhouse. At the heart of this evolution is a strategic ...
The E.W. Scripps Company Rises 51% YTD: Should You Buy the Stock Now?
ZACKS· 2025-07-07 16:55
Key Takeaways SSP shares have surged 51% YTD, outpacing industry and sector peers, including NXST, SBGI and PARA. SSP renewed WNBA rights and added Tampa Bay Lightning games, boosting ad demand and viewer engagement. Focused sports strategy and strong CTV execution are helping SSP's competitive position against key rivals.The E.W. Scripps Company (SSP) shares have rallied 51.1% in the year-to-date (YTD) period, outperforming the Zacks Broadcast Radio and Television industry’s growth of 34.1% and the Zacks ...
Roku: Amazon Deal Is A Major Catalyst
Seeking Alpha· 2025-07-01 03:37
Group 1 - Roku announced a major partnership with Amazon in June, indicating potential for increased collaboration in the connected TV market [1] - The connected TV market is experiencing rapid growth, presenting significant opportunities for companies involved [1]
The Trade Desk's CTV Business Driving Growth: Can the Momentum Hold?
ZACKS· 2025-06-26 13:26
Key Takeaways CTV emerges central to TTD's growth, with video ads making up a high-40s percentage share of spend. TTD's new Ventura OS to boost CTV targeting while UID2 and OpenPath tools witness increasing adoption. Macroeconomic volatility and trade tensions may weigh on ad budgets and dampen TTD's revenue growth.The Trade Desk (TTD) is benefiting from higher Connected TV (“CTV”) adoption amid the convergence of internet and television programming. This particular growth driver is fast becoming the focu ...
The Trade Desk vs. PubMatic: Which Ad-Tech Stock Is the Better Pick?
ZACKS· 2025-06-20 15:20
Key Takeaways TTD posted 25% revenue growth with Kokai adoption ahead of schedule and over 95% customer retention. PUBM's CTV business rose 50% year over year, but total sales fell 4% mainly due to a DSP client shift. TTD trades at a higher P/E than PUBM, raising valuation concerns amid uncertainty.Both The Trade Desk (TTD) and PubMatic (PUBM) play pivotal roles in the programmatic advertising ecosystem, but at opposite ends of the spectrum. TTD operates a leading demand-side platform (DSP), which helps a ...
The Trade Desk Repurchases $386M Stock: A Smart Capital Move?
ZACKS· 2025-06-19 14:26
Key Takeaways TTD repurchased $386M in shares in Q1 2025, exceeding its free cash flow of $230M for the quarter. A $1B authorization backs TTD's repurchase strategy, supported by $1.7B in liquidity and no debt. TTD expects Q2 revenues of at least $682M, implying 17% growth with stable macro conditions.The Trade Desk, Inc. (TTD) announced in its first-quarter 2025 earnings release that it used $386 million in cash to buy back its common stock. Strong balance sheet and consistent cash flow aided the repurch ...
Roku Partners With Amazon Ads: Should You Buy, Sell or Hold the Stock?
ZACKS· 2025-06-17 17:16
Core Insights - Roku has partnered with Amazon Ads to enhance advertiser access to Connected TV audiences, potentially reaching 80 million U.S. CTV households through Amazon DSP [1][2] - Early results from the partnership show a 40% increase in unique viewers and a nearly 30% reduction in ad repetition, indicating improved targeting and measurement capabilities [2] - Roku's shares rose 10.4% following the announcement, reflecting investor optimism about growth opportunities [3] Advertising Strategy - Roku's advertising strategy is gaining momentum with tech-driven upgrades, including an AI-powered Home Screen and partnerships with Adobe and INCRMNTAL [6] - In Q1 2025, Roku's platform revenues grew 17% year-over-year to $881 million, with ad revenues growing even faster [7] - The Roku Channel experienced an 84% year-over-year increase in viewing hours, indicating rising engagement [7] Competitive Landscape - Roku operates in a competitive advertising industry, facing challenges from rivals like Netflix and Paramount Global, which are expanding their ad-supported streaming services [10][11][12] - Netflix's ad-supported tier has seen significant growth, with 94 million subscribers as of May, reflecting strong demand [11] - Paramount Global is expanding its ad-supported tier internationally, indicating a broader strategy to scale its advertising business [12] Devices Segment Challenges - Roku's Devices segment continues to struggle with profitability despite a year-over-year revenue increase of 11% to $140 million in Q1 2025 [13][14] - The segment reported a gross loss of $19 million, highlighting ongoing challenges from macroeconomic pressures and heavy promotional activities [13][14] Valuation and Future Outlook - Roku's price-to-cash flow ratio stands at 38.74X, higher than the industry average of 32.82X, suggesting high growth expectations but an unattractive valuation for value investors [15] - The Zacks Consensus Estimate for Roku's 2025 total revenues is $4.55 billion, indicating a year-over-year growth of 10.54% [9] - While Roku's long-term prospects appear solid, near-term risks and challenges in the Devices segment warrant caution [19][20]
FUBO Launches Programmatic Pause Ads: How Should You Play the Stock?
ZACKS· 2025-05-30 16:31
FuboTV (FUBO) has launched a new ad format called programmatic pause ads, becoming the first Connected TV (CTV) platform to do so. This is a major milestone for the company, allowing it to show targeted ads when viewers pause content.FUBO’s latest iteration of pause ads builds on its broader CTV ad innovation strategy. Initially launched last year as part of its interactive ad suite, pause ads appear a few seconds after a viewer pauses content and disappear once playback resumes. According to the company’s ...
Trade Desk Silences Critics; Recovery Looks Poised to Continue
MarketBeat· 2025-05-24 12:32
Core Viewpoint - Trade Desk experienced a significant recovery in Q1 2025 after a disappointing Q4 2024 earnings report, indicating potential for continued growth despite previous setbacks [1][2]. Group 1: Earnings Performance - Trade Desk's Q4 2024 earnings report marked the first time the company missed internal revenue expectations in 33 quarters, leading to a 33% drop in share price [1]. - In Q1 2025, the company reported a revenue growth of 25%, surpassing Wall Street's forecast of 17%, and adjusted earnings per share (EPS) grew by 27%, contrary to expectations of a 4% decline [6][7]. - The adjusted EBITDA margin increased by 82 basis points to 34%, significantly exceeding Wall Street's prediction of a drop to below 26% [7]. Group 2: Product Development and Adoption - The rollout of Trade Desk's next-generation ad tech platform, Kokai, faced challenges in Q4 2024 but saw accelerated adoption in Q1 2025, with two-thirds of customers transitioning ahead of schedule [5][8]. - Kokai has demonstrated improved client results, with the cost of acquiring a new customer dropping by 20% and the cost to reach a unique person with an ad decreasing by over 42% compared to the previous platform [9][10]. Group 3: Market Position and Future Outlook - Trade Desk operates primarily in the connected TV (CTV) advertising space, which is expected to grow as ad spending shifts from traditional TV, with only $29 billion spent on CTV in 2024 compared to nearly $60 billion for traditional TV [11]. - The company maintains a high customer retention rate above 95%, indicating strong client satisfaction and loyalty [10].