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Should You Buy The Trade Desk Stock After Its 40% Crash Post-Earnings? Wall Street Says This Will Happen Next.
The Motley Fool· 2025-08-10 08:10
Core Viewpoint - The Trade Desk experienced a significant stock decline of nearly 40% following its second-quarter financial results, the departure of its CFO, and a cautious outlook due to tariff uncertainties [1][11]. Financial Performance - The Trade Desk reported second-quarter revenue of $694 million, reflecting a 19% year-over-year increase, and a non-GAAP net income of $0.41 per diluted share, which is a 5% increase [9]. - The company provided weak guidance for the third quarter, projecting revenue growth of 14% to $717 million and adjusted EBITDA growth of 8% to $277 million [11]. Market Position and Competitiveness - The Trade Desk operates as an independent demand-side platform (DSP), differentiating itself from larger competitors like Amazon, Google, and Meta Platforms by not owning media content, which reduces conflicts of interest [4][5]. - The company has established critical partnerships with streaming platforms such as Netflix, Roku, and Disney, as well as retailers like Albertsons and Walmart, enhancing its position in connected TV (CTV) and retail advertising [6]. Growth Outlook - Despite the recent stock decline, analysts maintain a median target price of $80 per share for The Trade Desk, indicating a potential upside of 48% from its current price of $54 [2]. - The adtech industry is projected to grow at an annual rate of 14% through 2030, suggesting a favorable long-term environment for The Trade Desk [8]. - Wall Street analysts expect The Trade Desk's adjusted earnings to increase by 14% annually through 2026, which could justify its current valuation of 31 times adjusted earnings [14].
Why The Trade Desk Stock Tumbled Today
The Motley Fool· 2025-08-08 16:02
Core Insights - The Trade Desk experienced a significant decline in stock price due to decelerating growth and increased competition in the adtech sector [1][5] - The company's second-quarter revenue rose 19% to $694 million, surpassing consensus estimates, but growth is slowing [3][4] - Analysts have downgraded the stock, citing concerns over competitive pressures from major players like Netflix, Amazon, Meta, and Alphabet [5] Financial Performance - Revenue for the second quarter was $694 million, exceeding the consensus estimate of $686 million [3] - Adjusted EBITDA increased by 12% to $271 million, while adjusted earnings per share rose from $0.39 to $0.41, matching estimates [4] - The company forecasts third-quarter revenue of at least $717 million and EBITDA of about $277 million, indicating a sequential decline in margins [6] Market Reaction - Following the earnings report, The Trade Desk's stock fell by 38.1%, with several analysts downgrading their ratings [1][5] - Bank of America notably double-downgraded the stock to underperform, highlighting justified concerns about competitive pressures [5] - The current price-to-earnings ratio stands at 31 based on adjusted earnings, reflecting a fair valuation given the uncertainty in growth prospects [7]
Adtech company OpenX sues Google, accusing it of anticompetitive tactics that 'crippled' its growth
Business Insider· 2025-08-04 18:19
Core Viewpoint - OpenX has filed a lawsuit against Google, alleging anticompetitive practices that have hindered its growth in the digital advertising market, seeking damages and fair competition [1][2]. Group 1: Allegations Against Google - OpenX's lawsuit claims that Google's illegal business practices have "crippled competitors like OpenX at every turn," preventing fair competition [2]. - The lawsuit alleges that Google has stifled innovation, harmed competition, decreased product quality, and caused significant damage to OpenX and its customers [2][10]. - OpenX accuses Google of coercing publishers not to work with them through illegal tying arrangements and rigging digital advertising auctions to favor its own ad exchange [10]. Group 2: Legal Context - The lawsuit follows a federal judge's ruling that found Google holds an illegal monopoly in certain online advertising technology markets [3][7]. - OpenX is the first adtech company to file a lawsuit against Google since the ruling, which determined that Google's conduct was illegal and anticompetitive [7]. - The court may potentially force a breakup of Google's adtech business, with remedies set to begin on September 22 [8]. Group 3: OpenX's Market Position - OpenX, founded in 2008, holds only a small percentage of the multibillion-dollar ad exchange market, and its publisher ad server was shut down in 2019 due to Google's conduct [9]. - The lawsuit seeks a jury trial, unspecified damages, and an injunction to prohibit Google's anticompetitive conduct [11].
5 Hypergrowth Tech Stocks to Buy in 2025
The Motley Fool· 2025-08-03 12:05
Core Insights - Companies delivering explosive revenue growth are positioned for significant upside potential, particularly in the tech sector [1] Palantir - Palantir Technologies reported a 39% increase in revenue to $883.9 million in Q1, marking its seventh consecutive quarter of accelerating revenue growth [2] - The U.S. commercial business revenue surged 71% year over year to $255 million, while revenue from the U.S. government increased by 45% [2] - The adoption of its AI Platform (AIP) is driving growth, with many customers still in early usage stages, indicating substantial growth opportunities [3][4] SoundHound AI - SoundHound AI experienced a remarkable 151% year-over-year revenue growth to $29.1 million, achieving six consecutive quarters of over 50% growth [5] - The company is making significant inroads in the automotive industry and the restaurant sector, leveraging its technology for customizable voice solutions [6] - The acquisition of Amelia enhances SoundHound's capabilities in agentic AI, with the potential for continued hypergrowth if its technology becomes the preferred interface across industries [7] AppLovin - AppLovin's revenue increased by 40% to $1.48 billion in Q1, with ad revenue soaring 73% due to its AI-powered Axon 2 engine [8] - The Axon 2 adtech engine optimizes ad targeting and placement, helping the company capture significant market share in mobile gaming, with expected growth of 20% to 30% [9] - AppLovin is expanding its ad engine into web-based and e-commerce advertising, presenting further growth opportunities [10] GitLab - GitLab achieved a 27% year-over-year revenue growth to $214.5 million in Q1, marking its eighth consecutive quarter of 25% to 40% growth [11] - The company is transforming into a full software-development life cycle platform, utilizing AI to automate processes and enhance value [12][13] - GitLab may shift from a seat-based model to a consumption-based model, which could drive significant revenue growth [13] Toast - Toast's revenue from subscription and fintech solutions grew by 35% year over year in Q1, with total restaurant locations using its platform increasing by 25% to 140,000 [15] - The company is evolving into a digital operating system for restaurants, offering tools for menu optimization, staffing, and marketing [16] - With expanding AI capabilities and a growing footprint, Toast is well-positioned for future growth in the restaurant tech sector [17]
X @BSCN
BSCN· 2025-08-02 06:41
TOKEN BREAKDOWN: $VRA - Discover @verasitytech's native token and why it matters for the growing adtech ecosystem...https://t.co/l3NYjFBlYy ...
Criteo Strengthens Product Leadership Team with Appointment of Wilfried Schobeiri
Prnewswire· 2025-07-24 12:00
Core Insights - Criteo has appointed Wilfried Schobeiri as Senior Vice President, Head of Product, Performance Media, to enhance its platform-first business model and create more value for brands and agencies [1][2] - Schobeiri will focus on advancing Criteo's strategy of developing AI-first products for commerce, allowing marketers to engage consumers throughout the shopping journey with improved autonomy and performance [2][4] - The appointment is part of a broader strategy to strengthen Criteo's platform vision, which includes other strategic hires like Sandeep Hejmadi, aimed at enhancing data infrastructure and privacy-first advertising solutions [3][4] Company Strategy - Criteo aims to evolve its performance media offerings into a comprehensive, self-service platform that caters to leading marketers across various channels [1][3] - The company is leveraging its extensive commerce dataset and AI capabilities to innovate and provide enhanced solutions for marketers [6] - Criteo's Chief Product Officer emphasized the importance of Schobeiri's technical expertise in accelerating the development of AI-driven commerce solutions [4][5] Leadership Background - Wilfried Schobeiri brings over 20 years of experience in building technology organizations and product development teams, with a strong background in programmatic and data-driven advertising [2][4] - Prior to joining Criteo, Schobeiri held significant roles at Ogury, Banyan, and MediaMath, contributing to the development of global product and technology strategies [4][5] - He has also been involved in industry initiatives, such as the IAB Tech Lab and the IAB Europe Transparency & Consent Framework, showcasing his leadership in the adtech space [5]
Prediction: After Datadog's S&P 500 Debut, These Stocks Could Be Next in Line
The Motley Fool· 2025-07-10 08:56
Group 1: S&P 500 Inclusion Criteria - Inclusion in the S&P 500 is significant for companies, often leading to stock price increases due to demand from funds that replicate the index [1] - Companies must be U.S.-domiciled, have a plurality of assets in the U.S., and trade on a major U.S. exchange to qualify for inclusion [2] - A company must be GAAP profitable in the prior quarter and over the last 12 months to be considered for entry [2] Group 2: Datadog's Inclusion - Datadog has recently been added to the S&P 500, prompting speculation about which companies might be next [3] Group 3: Robinhood Markets - Robinhood has a market cap exceeding $80 billion and is profitable, generating $1.95 billion in net income for 2024 and $336 million in Q1 2025 [5][6] - The company experienced a 50% year-over-year revenue increase in Q1, reaching $927 million, driven by new product introductions and client acquisition strategies [6] - Robinhood is expanding its services with AI tools and a banking service, and its acquisition of Bitstamp for $200 million enhances its offerings [7][8] Group 4: AppLovin - AppLovin, with a market cap over $115 billion, is the largest U.S. company not currently in the S&P 500, and it generated nearly $1.6 billion in net income last year [9] - The company reported a 40% year-over-year revenue increase to $1.48 billion last quarter, with advertising revenue soaring 70% to $1.16 billion [11] - AppLovin's growth is driven by its AI-powered Axon-2 adtech solution, and it anticipates significant growth in its mobile video gaming segment [12][13] Group 5: Cheniere Energy - Cheniere Energy, with a market cap over $50 billion, is profitable and benefits from strong demand for liquefied natural gas (LNG) [14][15] - The LNG market is projected to grow by 60% by 2040, and Cheniere is expanding its export capabilities to capitalize on this growth [15] - Approximately 95% of Cheniere's volumes are contracted until the mid-2030s, providing strong visibility into future cash flows [16]
History Says the Stock Market Is About to Soar: 2 Magnificent AI Stocks to Buy Now, According to Wall Street
The Motley Fool· 2025-07-09 08:12
Group 1: S&P 500 Performance - The S&P 500 index increased by 20.5% during the two-month period ending June 9, 2025, marking only the sixth occurrence of such a return since 1950 [1] - If the index follows historical trends, it could rise by 31% to 7,868 by next June, indicating a 26% upside from its current level of 6,230 [2] Group 2: The Trade Desk - The Trade Desk operates as a leading independent demand-side platform (DSP) in the adtech industry, utilizing AI to optimize advertising campaigns across digital channels [5] - The company reported a 25% increase in revenue to $616 million and a 27% rise in non-GAAP net income to $0.33 per diluted share in the first quarter [6] - Adtech spending is projected to grow at 14% annually through 2030, with The Trade Desk recognized as a leader in adtech innovation [7] - The median target price for The Trade Desk among 41 analysts is $84 per share, suggesting a 15% upside from its current price of $73 [8] - The Trade Desk's independent business model allows it to avoid conflicts of interest, unlike competitors such as Google and Meta [9] - The company is expected to upgrade all clients to its Kokai platform by year-end, which includes new AI tools for optimizing campaigns [10] - Wall Street anticipates an 11% annual earnings increase through 2026, although the current valuation of 42 times earnings may appear high [11] Group 3: Okta - Okta is a leader in identity and access management (IAM) software, which is crucial for securing access to sensitive applications [12] - The company reported a 12% revenue increase to $688 million and a 32% rise in non-GAAP net income to $0.86 per diluted share in the first quarter [14] - IAM is increasingly important as identity-based attacks account for 30% of all cybersecurity incidents, with spending expected to grow at 12.6% annually through 2030 [15] - Wall Street estimates Okta's adjusted earnings will increase at 10% annually through fiscal 2027, with a current valuation of 32 times earnings [16]
Why AI Stock AppLovin Crushed It on Monday
The Motley Fool· 2025-06-30 22:23
Core Viewpoint - AppLovin's stock experienced a nearly 5% increase following a bullish report from Jefferies, outperforming the S&P 500's 0.5% rise [1][2]. Group 1: Analyst Recommendations - Jefferies reiterated a buy recommendation for AppLovin, highlighting optimism about the company's future prospects [2]. - The report suggests that e-commerce advertising spending increased sequentially in Q2 and is expected to continue growing in Q3, which will positively impact AppLovin's revenue [4]. Group 2: Business Expansion Plans - AppLovin plans to expand its offerings to a broader customer base in the upcoming year, which is anticipated to drive additional business [5]. - The company is considering lowering its gross merchandise value (GMV) minimum for clients from the current $10 million, potentially attracting more customers [5]. Group 3: Market Sentiment and Concerns - A recent decline in AppLovin's share price has made it an attractive investment opportunity, despite concerns raised by a short-seller report regarding the company's reputation and product delays [6]. - The Jefferies team believes that the issues highlighted by the short-seller report will not have a long-term negative impact on AppLovin's stock value [6].
AppLovin's Real Upside Is Just Starting
Seeking Alpha· 2025-06-25 16:17
Company Overview - AppLovin Corporation (NASDAQ: APP) has become one of the fastest-growing platforms in the adtech space, with revenue for 2024 increasing by 43% to $4.7 billion and net earnings quadrupling to $1.6 billion [1] Investment Strategy - Pythia Research focuses on identifying multi-bagger stocks, particularly in the technology sector, utilizing a blend of financial analysis, behavioral finance, psychology, social sciences, and alternative metrics to assess companies with high conviction and asymmetric risk-reward potential [1] - The strategy aims to uncover breakout opportunities before they gain mainstream attention by leveraging both traditional and unconventional insights [1] - The approach emphasizes understanding market sentiment, identifying emerging trends, and investing in transformative businesses poised for exponential growth [1] Market Behavior Insights - The analysis acknowledges that markets are influenced not only by fundamentals but also by perception, emotion, and bias, leading to persistent inefficiencies [1] - Investor behavior, such as anchoring to past valuations and herd mentality, can create mispricing that often marks the beginning of a breakout [1] - The strategy involves assessing whether market volatility is driven by emotion or fundamentals, recognizing that status quo bias can blind investors to companies redefining their categories [1] Research Methodology - The research process combines deep analysis with signals that others may overlook, such as sudden narrative shifts, early social traction, founder-driven vision, or underappreciated momentum in developer or user adoption [1] - These signals are often precursors to exponential moves if identified early [1] - The focus is on conviction plays rather than safe bets, evaluating each opportunity based on its risk/reward profile, aiming for limited downside and explosive upside [1]