Core Viewpoint - The article identifies three stocks that have the potential to double in value in 2026, highlighting their growth prospects and market positioning. Group 1: Nebius - Nebius was spun out of Yandex and focuses on cloud computing, similar to Google Cloud [3][4] - The company is expanding its data center footprint and renting out computing capacity, primarily using Nvidia GPUs for AI workloads [4] - Nebius expects an annual run rate of $7 billion to $9 billion in revenue for 2026, up from a current ARR of $551 million, indicating significant growth potential [6][7] Group 2: The Trade Desk - The Trade Desk operates a buy-side ad platform and experienced its slowest growth quarter in Q3, but the industry is still growing, particularly with connected TV [8][10] - The stock trades at an attractive valuation of 18 times forward earnings, which could lead to a doubling of the stock price if growth resumes [11] - The absence of political spending headwinds in 2026 may facilitate a return to growth for The Trade Desk [10] Group 3: MercadoLibre - MercadoLibre is the leading e-commerce platform in Latin America and has developed a fintech division to enhance payment access [12][13] - The company is projected to achieve 29% revenue growth in 2026, with potential for even higher growth based on historical performance [15] - Despite a 20% decline from its all-time high, MercadoLibre's strong growth trajectory suggests a high chance of doubling in 2026 [15][16]

Industry Overview - The global digital advertising market is projected to grow at a CAGR of 15.4% from 2025 to 2030, indicating its attractiveness as a long-term growth market in technology [1]. Company Analysis: The Trade Desk (TTD) - TTD is a leading independent demand-side platform (DSP) in digital advertising, focusing solely on advertising, which allows for concentrated efforts on product innovation and customer relationships [4]. - TTD has a strong customer retention rate, consistently above 95% as of Q3 2025 [4]. - Connected TV (CTV) is a significant growth driver for TTD, with management expecting decision-based CTV buying to become the standard model [5]. - Strategic partnerships with major companies like Disney, NBCU, and Roku enhance TTD's market position, with video advertising comprising over 50% of its total business [6]. - TTD's financial health is robust, with $1.4 billion in cash and no debt, allowing for continued innovation and market expansion [7]. - The company is investing in AI-driven platforms like Kokai, which has shown significant performance improvements compared to previous models [8]. - Despite its strengths, TTD faces intense competition from major players like Meta, Apple, Google, and Amazon, which control significant inventory and user data [9]. Company Analysis: Amazon (AMZN) - Amazon's advertising business generated $17.6 billion in Q3 2025, reflecting a 22% year-over-year increase, supported by its full-funnel advertising offerings [12]. - Amazon DSP leverages extensive first-party data, enabling advertisers to optimize their campaigns effectively [13]. - Partnerships with platforms like Roku and Netflix, along with integrations with Spotify and SiriusXM, enhance Amazon's advertising reach [14]. - Live sports on Prime Video are a key growth area for Amazon's ad business, with strong advertiser interest noted for upcoming years [15]. - AI is increasingly integral to Amazon's advertising strategy, with new tools designed to streamline the creative process [16]. - Amazon's advertising segment is still a small portion of its overall revenue, indicating significant growth potential, while its diversified business model provides stability [17]. Valuation and Performance Comparison - TTD shares have declined by 4.6% over the past month, while AMZN shares have increased by 0.5% [20]. - Both companies are considered overvalued, with TTD trading at a forward P/E ratio of 17.84X and AMZN at 29.02X [21][23]. - Analysts have made slight upward revisions to TTD's earnings estimates, while AMZN's estimates have been revised upward by 4.5% for the current fiscal year [24][25]. - TTD holds a Zacks Rank of 3 (Hold), whereas AMZN has a Zacks Rank of 2 (Buy), suggesting a stronger investment case for Amazon [27][28].

Core Insights - MNTN has been recognized as a 2025 Inc. Power Partner Award winner, highlighting its role in supporting entrepreneurs and aiding company growth in the B2B sector [1][2]. Company Overview - MNTN is a technology platform focused on performance marketing for Connected TV, making television advertising accessible and measurable for businesses [2][7]. - The company aims to simplify TV advertising, allowing brands to generate traffic, leads, and revenue effectively [4][7]. Recognition and Impact - The Inc. Power Partner Awards honor B2B organizations that excel in assisting startups and entrepreneurs across various business aspects, including hiring, compliance, and fundraising [3][4]. - MNTN's recognition reflects its commitment to helping small businesses navigate the complexities of advertising and marketing [4][5]. Innovations and Developments - MNTN has introduced QuickFrame AI, a creative orchestration engine that enables marketers to create complete TV commercials in minutes, enhancing the efficiency of ad production [5][14]. - The company has expanded its Partner Program to include over 40 leading performance marketing agencies, further solidifying its position in the market [5]. Market Position - MNTN's technology has allowed 97% of its brands to engage in television advertising for the first time, indicating a significant shift in the advertising landscape [5]. - The company continues to innovate with advancements in targeting technology and attribution systems, aiming to redefine advertising possibilities on television [5].

Financial Data and Key Metrics Changes - The company reported a third consecutive quarter of results that met or exceeded expectations, driven by the Scripps Sports strategy and strong sales execution [4] - Local media division revenue decreased by 27% due to the absence of political advertising revenue compared to the prior year, while core advertising revenue increased by nearly 2% [6] - The company reported a loss of $0.55 per share, which included various costs that increased the loss by a total of $0.15 per share [10] - Net leverage improved to 4.6 times at the end of Q3, down from 6 times in Q2 of the previous year [12] Business Line Data and Key Metrics Changes - Local media segment profit was nearly $53 million compared to $161 million in Q3 of the previous year [6] - Scripps Networks revenue was approximately flat at $201 million year-over-year, with connected TV revenue up 41% [7][8] - Scripps Networks' segment profit was $53 million, with a segment margin of 27% [9] Market Data and Key Metrics Changes - The company expects local media division revenue to decline by about 30% in Q4, while core revenue is anticipated to increase by about 10% [6] - Scripps Networks' revenue is expected to decrease in the low double-digit range for Q4 due to various factors, including a lack of political revenue and lower upfront advertising [9] Company Strategy and Development Direction - The company is focused on optimizing its portfolio through station swaps and sales, with recent transactions yielding strong valuations [4][22] - The Scripps Sports strategy has been a significant driver of revenue growth, particularly in women's sports and partnerships with various leagues [14][16] - The company is pursuing aggressive distribution on streaming services, projecting connected TV revenue to exceed $120 million in 2025 [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategies, highlighting strong performance in sports and connected TV revenue streams [13] - The upcoming midterm elections are expected to yield record spending across the advertising ecosystem, positioning the company well for future growth [22] - Management acknowledged challenges in the advertising environment but remains optimistic about the potential for recovery as economic uncertainties are resolved [72] Other Important Information - The company has been actively managing expenses, resulting in improved margins and a focus on fiscal discipline [20] - The Scripps Transformation Office is leveraging technology and AI to enhance operational efficiency and drive growth [20] Q&A Session Summary Question: What is the outlook for further asset sales? - Management indicated there are still significant opportunities for optimizing the portfolio through buying, selling, and swapping stations [26] Question: Can you elaborate on the impact of the government shutdown on revenue? - Management noted that the government shutdown has affected demand and buying from networks, particularly in the Medicare Advantage space [68] Question: How is the advertising environment compared to six months ago? - Management observed some strength in local advertising but noted challenges in the national ad marketplace, particularly in direct response pricing and pharmaceuticals [55][72] Question: What is the company's strategy regarding AI and cost efficiency? - Management expects to provide more information on the impact of technology and AI on operational efficiency in the upcoming year [78]

Financial Data and Key Metrics Changes - The company reported a positive operating income in Q3 for the first time since fiscal 2021 [12] - Adjusted EBITDA for Q4 is projected to be $145 million, the highest ever for the company [12] - EBITDA margins are expected to improve by 200 basis points year-over-year to approximately 8.4% for the full year [12] - The trailing 12-month free cash flow exceeded $440 million, indicating strong cash generation [12] Business Line Data and Key Metrics Changes - Platform revenue growth was reported at 17% year-over-year for Q3, with a guidance of 15% for Q4 [21][67] - Premium subscriptions are performing well, with new Tier 1 subscription services expected to launch in 2026 [11][30] - The company is focused on three key areas for platform revenue growth: enhancing the home screen, increasing ad demand, and growing subscription revenue [6][7] Market Data and Key Metrics Changes - The company has a significant presence, with Roku being used in half of broadband households in the U.S. [8][41] - The advertising business is growing, with approximately 90% of advertisers on Ads Manager being new to Roku in Q3 [20] - The company is seeing strong performance in video advertising, growing faster than the U.S. OTT and digital ad marketplaces [63] Company Strategy and Development Direction - The company aims to maintain double-digit platform revenue growth while increasing profitability in 2026 and beyond [6] - There is a focus on improving the home screen and user interface to enhance viewer engagement and monetization [9][27] - The company is investing in partnerships with major DSPs, including Amazon, to drive ad revenue growth [10][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the outlook for Q4 and 2026, citing strong growth drivers and successful monetization initiatives [6][22] - The company is optimistic about the potential of its new home screen and ad products to drive future revenue [27][28] - Management noted that the streaming sector remains robust and continues to grow, providing opportunities for the company [59] Other Important Information - The company has $2.3 billion in cash and short-term investments, indicating a strong financial position [12] - The company initiated a net share settlement program to offset about 40% of gross dilution [13] - The company is exploring opportunities to monetize its first-party data, including potential partnerships with LLMs [34] Q&A Session Summary Question: Trends in the platform business and growth drivers for Q4 and 2026 - Management highlighted a very good outlook and confidence in maintaining double-digit platform revenue growth [6] Question: Capital allocation priorities and share buybacks - The company repurchased $500 million of stock and aims to offset 100% of share dilution over time [13] Question: Size and growth rates of third-party DSPs and Ads Manager - Management noted strong growth in Ads Manager and emphasized the importance of deepening integrations with DSPs [19] Question: New home screen's impact on engagement and monetization - The new home screen aims to enhance user experience and drive higher monetization through improved engagement [26] Question: Opportunities in sports content and centralized viewing experiences - Management sees significant opportunities in sports streaming and aims to simplify access for viewers [41][47] Question: ARPU growth expectations - Management expects ARPU to grow faster than platform revenue growth due to monetization initiatives [51] Question: Macro environment trends and advertising performance - Management reported positive trends in advertising and noted strong performance in video advertising [63][66] Question: Amazon DSP partnership and its potential impact - Management indicated strong customer interest in the Amazon DSP partnership, which is expected to ramp up into 2026 [72][74] Question: Self-serve business capabilities and long-term potential - Management confirmed that all necessary partnerships and technology are in place to scale the self-serve business [75] Question: Streaming hours performance and any concerns - Management clarified that slight de-sell in streaming hours is not concerning, as monetizable hours continue to grow [84]

Core Insights - The advertising industry is facing significant challenges due to tariffs, inflation, and macroeconomic uncertainty, impacting media budgets and spending strategies of advertisers [1][2][6] - The Trade Desk is experiencing a decline in investor sentiment due to weak fiscal guidance and a substantial drop in share price, despite a year-over-year revenue increase [4][5] Industry Overview - 91% of surveyed ad buyers are concerned about tariffs affecting their media budgets, with 62% to 69% expecting significant impacts on the auto, retail, and consumer electronics sectors [1] - The IAB has lowered the 2025 U.S. ad spend outlook from 7.3% to 5.7%, indicating pressure on ad budgets and intensified competition from major players like Alphabet, Meta Platforms, and Amazon [6] Company Performance - The Trade Desk's revenue rose 19% year-over-year to $694 million in Q2 2025, surpassing consensus estimates, but this did not boost investor confidence [5] - The company is guiding for Q3 revenues of $717 million, slightly below consensus estimates, and expects an adjusted EBITDA margin of 38.6%, down from 39% in Q2 [4] Future Prospects - The Trade Desk's Kokai platform, which utilizes AI, is gaining traction, with campaigns showing over 20-point improvements in key performance indicators compared to legacy systems [3][8] - Connected TV (CTV) is a rapidly growing segment for The Trade Desk, accounting for 40% of total revenues in Q2 2025, with expectations for CTV to capture over 40% of global ad spend by 2030 [9][10] Strategic Initiatives - The company is enhancing pricing transparency through initiatives like OpenPath and Deal Desk, which could provide a competitive edge in the programmatic advertising space [11][12] - The Trade Desk is well-positioned to leverage its AI capabilities and cash reserves of $1.7 billion to fund future growth initiatives [13]

Core Insights - Roku's stock has increased by 28% in 2025, outperforming the market [1] - The company returned to profitability in Q2, ending a three-year streak of losses, and continues to show double-digit revenue growth [2] - Roku's stock is still trading over 80% below its all-time high from 2021, indicating it may be undervalued historically [4] Financial Performance - Roku achieved a record 35.4 billion hours of streaming in Q2, a 17% year-over-year increase [5] - The company has consistently generated hundreds of millions in free cash flow over the trailing twelve months [2] - Analysts have noted that Roku has exceeded quarterly profit expectations by 25% or more over the past year [6] Market Position - The shift of advertising dollars from traditional television to streaming is benefiting Roku, despite potential near-term volatility [5] - Roku is positioned to engage its growing audience effectively, with upcoming Q3 results expected on October 30 [6] - The company is recognized as a leader in the connected TV market, with ongoing revenue and platform consumption growth [7]

Core Viewpoint - The article highlights two undervalued growth stocks, Carnival and Roku, which are positioned for attractive returns as they trade significantly below their previous peaks while experiencing growing demand for their services. Group 1: Carnival - Carnival stock has risen 62% over the last year but remains 60% below its all-time high before the pandemic [2] - The company is a global leader in the cruise industry, with brands including Costa Cruises, Aida, and Princess Cruises, benefiting from strong demand that is driving ticket prices and record revenues [3] - Carnival generated $4.3 billion in operating profit on $26 billion of revenue over the last year, with a recent quarterly record in revenue and profitability, yet trades at just 14 times this year's consensus earnings estimate [4] - The company has reported its 10th consecutive quarter of record revenue and is investing in exclusive destinations to drive further demand, such as Celebration Key and Half Moon Cay [5][6] - Analysts expect Carnival's earnings to grow at an annualized rate of 21%, with nearly half of 2026 sailings already booked, indicating strong demand visibility [6] Group 2: Roku - Roku is well positioned to capture advertising spending shifting from traditional TV to digital streaming, with over 150 million viewers starting their daily TV watching through its platform [7] - The connected TV market is transforming, with nearly 44% of total TV watching time in the U.S. occurring on streaming platforms, and ad spending in this market expected to grow from $33 billion this year to $47 billion by 2028 [8] - Roku's platform revenue, which includes ads and subscription revenue sharing, grew 18% year over year last quarter, indicating a positive trend in ad spending [9] - The company competes in a competitive connected TV market but offers a budget-friendly alternative and free ad-supported content through The Roku Channel [10] - Roku's stock is up 34% year to date, with analysts expecting free cash flow to grow at an annualized rate of 42% to reach $1.2 billion by 2029, suggesting potential for market-beating returns [11][12]

Media Landscape & Strategic Partnerships - PLL inked a fresh 5-year broadcast deal with ESPN, with ESPN becoming a minority owner [1] - Potential media deal in the works, considering assets from Warner Brothers, Paramount, and Sky Dance [2] - Media conglomerates are positioning themselves in the tech awakening [3] - Connected TV is in 88% of homes, totaling 117 million homes, leading to a shift in viewership [11] - Streaming viewership eclipsed broadcast and cable viewership combined in May 2025 [12] PLL Growth & Performance Metrics - Pro sports is an amazing asset class with enterprise value moving from media to partnerships to live events [6] - Viewership across linear platforms is up significantly [13] - ABC broadcast viewership is up 55% [13] - ESPN viewership is up 81% [13] - All-Star game viewership is up 115% year-over-year [13] - Ticket sales are up 11% [13] - Sponsorship is up 20% [14] - Merchandise sales are up 10% [14]

Group 1: SoFi Technologies Overview - SoFi has transformed from a student loan refinancing company to a comprehensive financial services provider, offering a diversified lineup of products including investment services and various types of loans [3] - The company has seen significant growth, with net income increasing by 459% to $97.3 million and revenue rising by 44% year over year to $858 million in the second quarter [3][4] - SoFi's membership reached 11.7 million, utilizing a total of 17.1 million products, indicating a product-to-member ratio of 1.5, suggesting potential for cross-selling additional services [8] Group 2: Financial Performance - SoFi's recurring fee-based revenue surged by 72% to $378 million, accounting for approximately 44% of total sales [4] - The company's stock price has increased by 85% year to date, reflecting strong financial results and market performance [4] Group 3: Future Growth Potential - SoFi has ample room for growth over the next decade by expanding its range of services and increasing its member base [2] - The company is well-positioned to capitalize on the preferences of younger adults who are increasingly seeking digital banking solutions [1]