Market Overview - The US stock market has entered correction territory, with the S&P 500 down 8% and the Nasdaq 100 down 11% from recent all-time highs, primarily due to uncertainty surrounding tariff trade policy and large federal spending cuts [1] - Historical trends indicate that market corrections often present excellent buying opportunities, particularly for high-quality companies with strong sales and earnings growth [2] Company Highlights Amazon - Amazon is experiencing its cheapest valuation in company history, trading at a forward P/E ratio of 31.8x compared to its 10-year median of 87.6x [6] - The company is a leader in e-commerce and cloud computing, with Amazon Web Services (AWS) generating the majority of its operating income and benefiting from long-term growth in enterprise cloud adoption [5] - Earnings are projected to grow at an annualized rate of 22.85% over the next three to five years, providing strong long-term return potential [8] Alphabet - Alphabet is trading at a historical discount, with a current forward P/E ratio of 19.4x compared to its 10-year median of 25.8x [13] - The company continues to grow its core business, Google Search, while integrating AI to enhance user engagement [10] - Google Cloud is growing at an impressive 30% annually, becoming a significant driver of revenue growth [12] Meta Platforms - Meta Platforms has 3.35 billion daily active users and has grown earnings at an annualized rate of 36% over the last decade, generating $1 billion in free cash flow weekly [15] - The company is leveraging AI to optimize its digital advertising, enhancing efficiency and revenue growth [16] - Earnings are forecasted to grow at an annualized rate of 18.3% over the next three to five years, with a forward earnings multiple of 23.5x, just below its 10-year median [17] Investment Opportunities - The current market pullback presents an opportunity to buy shares in high-quality tech stocks like Alphabet, Amazon, and Meta Platforms at rare discounts [18] - These companies are trading below their historical valuation averages, which limits downside risk and enhances long-term return potential as earnings expand [19] - Investors with a long-term mindset may view this correction as a chance to accumulate shares in industry leaders with strong balance sheets and competitive advantages [19]

NEW YORK, March 7, 2025 /PRNewswire/ -- Levi & Korsinsky, LLP notifies investors in The Trade Desk, Inc. ("The Trade Desk" or the "Company") (NASDAQ: TTD) of a class action securities lawsuit.CLASS DEFINITION: The lawsuit seeks to recover losses on behalf of The Trade Desk investors who were adversely affected by alleged securities fraud between May 9, 2024 and February 12, 2025. Follow the link below to get more information and be contacted by a member of our team:https://zlk.com/pslra-1/the-trade-desk-inc ...

Alphabet (GOOG -0.69%) (GOOGL -0.62%) is well established as a tech leader and is one of the most valuable companies in the world. However, the stock is still vulnerable to the same kinds of macro-level risks as the rest of the stock market, and in February, a combination of weaker-than-expected revenue in its fourth-quarter earnings report and broader worries around the global economy sent the stock tumbling. By the end of the month, Alphabet had lost 17%, according to data provided by S&P Global Market In ...

Why did The Trade Desk stock tumble in February? Check out the key factors behind this market darling's dramatic price cut.Shares of The Trade Desk (TTD -2.83%) plunged 40.8% lower in February 2025, according to data from S&P Global Market Intelligence. The digital advertising expert's fourth-quarter report fell short of Wall Street's revenue targets on Feb. 12, raising questions about the company's growth prospects.Q4 results, by the numbersThe Trade Desk was no slouch in Q4 2024. Revenues rose 22% year ov ...

Core Insights - Pixalate released the February 2025 Publisher Trust Index (PTI) for Brazil, highlighting the top websites and mobile apps for programmatic ad quality [1][2] - The PTI provides a comprehensive measurement of quality across various platforms, enhancing transparency in the programmatic advertising ecosystem [2][5] Brazil Website PTI Rankings - The top two websites for programmatic ad quality in Brazil are spotify.com and ebay.com, with globo.com ranking third [1][7] Brazil Mobile PTI Rankings - Among mobile apps, SofaScore (Apple App Store) and Drift Max Pro (Google Play Store) ranked No. 1 [1][8] - Other notable mobile apps include Remini and Subway Surfers for Apple App Store, and Spacer shooter and Yoosee for Google Play Store [8] Data Analysis - Pixalate's data science team analyzed over 38 billion global open programmatic ad impressions across more than 14 million websites and mobile apps in February 2025 [4][5] - The Publisher Trust Indexes cover rankings for over 235 countries across all four global regions: North America, EMEA, APAC, and LATAM [5]

Core Viewpoint - NVIDIA is primarily a data center business, with significant revenue growth driven by demand for its GPUs from hyperscalers and enterprise companies, particularly in the context of artificial intelligence [3][4][6]. Group 1: Revenue Growth and Drivers - NVIDIA reported a remarkable sales growth of 78%, largely attributed to data center revenue [3][6]. - The growth is fueled by major hyperscalers like Microsoft and Amazon, as well as Fortune 500 companies investing in their own AI capabilities [3][4]. - The company has seen a 200X reduction in inference costs over the past two years, while the complexity of tasks performed by its chips has increased significantly [4][8]. Group 2: Technological Advancements - NVIDIA is focusing on scaling laws, particularly post-training scaling, which requires more compute power as models continue to learn after release [5][8]. - The company is architecting its technology to handle increasing compute demands, which helps drive down costs for customers [8][12]. Group 3: Networking Revenue - NVIDIA's networking revenue is currently declining due to a transition to a new standard called Envy Link 72, but the company expects growth in this area in the near future [9][11]. Group 4: Future Vision - CEO Jensen Huang envisions a future with agentic AI for enterprises, physical AI for robotics, and sovereign AI for governments, indicating a broad market potential beyond current major customers [12][15]. - The company aims to provide technology that allows governments to develop their own AI capabilities, positioning itself as a key player in this emerging market [15][16]. Group 5: Market Valuation and Investment Considerations - NVIDIA's stock is currently trading at about 28 times forward earnings, which raises questions about future growth sustainability [17][18]. - Despite concerns about valuation, NVIDIA's historical ability to anticipate market needs and develop relevant technology suggests potential for future growth [18].

Core Insights - The Trade Desk reported a 22% year-over-year revenue increase in Q4, totaling $741 million, which fell short of analyst expectations of $758 million, leading to a significant stock decline [1][10] - Despite the revenue miss, The Trade Desk's long-term growth prospects remain strong, particularly in the connected TV advertising market, which is expected to grow substantially [3][7] Financial Performance - For 2024, The Trade Desk's revenue is projected to grow 26% to $2.4 billion, an acceleration from the previous year's 23% growth [4] - Adjusted earnings per share increased by 44% year-over-year in Q4, with annual adjusted earnings growing 32% to $1.66 per share [4] Market Position - The Trade Desk holds a strong competitive position in the programmatic advertising space, with its demand-side platform accounting for 90% of digital ad spending [6] - The company's Unified ID 2.0 technology is widely adopted by leading streaming services, enhancing audience targeting capabilities [6] Industry Context - Digital ad spending grew 13% last year, positioning The Trade Desk's performance favorably against industry growth [5] - The connected TV ad market is projected to grow 20% to reach $38 billion in 2024, representing a significant opportunity for The Trade Desk [7] Valuation Concerns - The Trade Desk's price-to-earnings (P/E) ratio stands at 92, indicating a high valuation despite strong growth, with a more reasonable price-to-free-cash-flow multiple of 57 [8] - A substantial portion of the free cash flow, $494 million, is attributed to stock-based compensation, raising concerns about the sustainability of this figure [9] Investor Sentiment - The company's failure to meet expectations for the first time in 33 quarters led to a sharp stock reaction, attributed to operational missteps during the quarter [10] - The current high valuation relative to the S&P 500's 29 times earnings suggests that investors may want to consider other growth stocks with more favorable earnings multiples [11]

Financial Data and Key Metrics Changes - Revenue in Q4 2024 increased 14% to $153 million, with a 40% adjusted EBITDA margin [6][37] - Full year 2024 revenue grew 12% to $530.1 million, achieving a 36% adjusted EBITDA margin [6][38] - Adjusted EBITDA for Q4 increased 29% to $61.4 million, with a margin increase from 35% to 40% year-over-year [44][49] - Net income for Q4 was $15.3 million or $0.09 per share, compared to $10.2 million or $0.06 per share in Q4 2023 [45][49] Business Line Data and Key Metrics Changes - Optimization revenue grew 11% to $70.6 million in Q4 [39] - Measurement revenue increased 12% to $59.1 million, with social media revenue growth at 25% [40] - Publisher revenue rose 30% to $23.4 million, driven by new product adoption and increased political spend [41] - International revenue grew 13% to $49 million, representing 32% of total revenue [42] Market Data and Key Metrics Changes - 32% of Q4 revenue came from markets outside of the Americas, with 45% of measurement revenue from international sources [17][42] - The US CTV market is projected to exceed $47 billion by 2028, indicating significant growth potential [15] Company Strategy and Development Direction - The company aims for continued double-digit growth in 2025, focusing on performance, reach expansion, and innovation [7][27] - Plans to expand into China and enhance operations in key APAC markets, unlocking significant digital ad spend opportunities [18][69] - The introduction of new capabilities in measurement and optimization products is expected to drive future growth [7][27] Management's Comments on Operating Environment and Future Outlook - Management noted a positive impact from political spending on the publisher side, while advertiser spending improved in retail and CPG sectors [104] - The shift towards real-time bidding in CTV is viewed as a tailwind for the business, with strong growth in publisher performance [105][106] - The company expects to deliver double-digit profitable growth in 2025, supported by ongoing investments in differentiated products [33][50] Other Important Information - The appointment of Jill Puttman as interim CFO was announced, bringing extensive finance experience to the role [34][83] - The company reduced long-term debt by $30 million to $35 million during the quarter [46] Q&A Session Summary Question: Impact of political spending and CTV shift - Political spending had limited impact on advertiser business but benefited the publisher side, with strong growth in retail and CPG [104] - The shift to real-time bidding in CTV is seen as beneficial, with a 30% year-over-year growth in the segment [105][106] Question: Pricing dynamics and measurement growth - The company experienced competitive pricing dynamics during RFPs, with strong adoption of total media quality (TMQ) across social platforms [110][111] - The pre-bid product on Meta has shown a 71% reduction in wasted ad spend, indicating strong early adoption [115] Question: Long-term visibility with pre-bid and post-bid products - The focus on performance and linking media quality signals with cost data enhances revenue forecasting and visibility [124][125] - The company is seeing strong adoption of pre-bid products, which is expected to improve overall business visibility [124] Question: Growth outlook by segment - Total advertiser revenue is expected to have double-digit growth, with measurement anticipated to see single-digit growth initially [128]

Financial Data and Key Metrics Changes - For Q4 2024, the company reported revenue of approximately $235 million, reflecting a decrease of 5% year-over-year [29] - Ex TAC gross profit was $68.3 million, an increase of 7% year-over-year, continuing a trend of acceleration and outpacing revenue growth for the seventh consecutive quarter [31] - Adjusted EBITDA grew 21% year-over-year to $17 million, indicating consecutive margin improvement [33] Business Line Data and Key Metrics Changes - The Outbrain DSP saw a growth of 45% in advertiser spend in 2024, driven by superior performance across various formats [11] - Revenue generated from supply beyond the traditional feed represented approximately 30% of revenue in Q4 2024, up from 26% in Q4 2023 [12] - The company successfully renewed agreements with key publishing partners and secured new business partnerships, demonstrating the value proposition offered to premium publishers [15] Market Data and Key Metrics Changes - Total ad spend was materially flat year-over-year during Q4 but increased year-over-year on a full-year basis [29] - Net revenue retention of publishers was 86%, reflecting downward pressure on ad impressions from a key supply partner [30] - The company has over 2 billion unique users and proprietary data signals through exclusive content partnerships with premium media properties [21] Company Strategy and Development Direction - The merger with Teads aims to combine branding and performance capabilities, enhancing the company's position in the open Internet advertising space [7] - The company plans to leverage AI to create a seamless consumer journey across various platforms, enhancing the effectiveness of advertising campaigns [17] - The focus on expanding beyond traditional feeds and enhancing performance capabilities is expected to drive future growth [49] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the integration of Teads and the potential for significant synergies, estimating an annual impact of $65 million to $75 million on adjusted EBITDA [36] - The company anticipates a return to overall pro forma growth by the second half of the year, with positive trends observed in the legacy Teads business [75] - Management highlighted the importance of CTV as a growing segment within performance marketing, with expectations for increased advertiser interest [84] Other Important Information - The company completed the acquisition of Teads on February 3, 2024, and will operate under the Teads brand moving forward [6][100] - The company ended Q4 with $166 million in cash and no debt, indicating a strong liquidity position [34] - The company does not intend to repurchase shares in the near term due to the recent acquisition [35] Q&A Session Summary Question: Transition of publishers and advertisers onto the combined platform - Management is focused on unifying teams and cross-selling, with a clear roadmap for integration and performance capabilities delivery [46] Question: Demand for native advertising - Management noted ongoing growth in performance solutions and a shift towards performance-driven advertising [50] Question: Drivers of growth in Outbrain DSP - The growth is attributed to enhanced bidding technology and the ability to broaden the share of wallet from performance advertisers [55] Question: Progress of revenue outside traditional feeds - Management expects continued investment in this area, viewing it as a growth driver [63] Question: Performance of legacy Teads business - Management reported a recovery in performance and positive trends in January and February following the merger [72] Question: Synergies from the merger - Management estimates $60 million in cost synergies and $5 to $15 million in revenue synergies, with a focus on optimizing traffic acquisition costs [90][96] Question: Future of the Teads brand and ticker symbol - The company will operate under the Teads name and plans to change the ticker symbol over time [100] Question: Funding for news advertising - Management sees early positive trends in advertising spending on news, although it remains a small part of the overall inventory mix [103]

Financial Data and Key Metrics Changes - Revenue growth for 2024 was 9% over 2023, more than doubling the previous year's growth rate [10][45] - Adjusted EBITDA margins expanded to 32%, marking a return to the "Rule of 40" benchmark [11][46] - Q4 revenue, excluding a specific DSP impact and political advertising, increased by 16% year-over-year [12][39] - Full-year net income was $12.5 million, or $0.23 per diluted share [56] Business Line Data and Key Metrics Changes - CTV revenue more than doubled in 2024, representing 20% of total revenue in Q4 [45][52] - Mobile app business grew 16% year-over-year, also accounting for 20% of total revenue [45] - Emerging revenue streams doubled in 2024, with Connect, the curation and data business, growing 140% year-over-year [53][96] Market Data and Key Metrics Changes - Omni-channel video revenue reached over 40% in Q4, with half coming from CTV [20] - The company now works with 80% of the top 30 global streamers, up from 70% a quarter ago [21][103] - Political advertising contributed approximately 6% of total revenue in 2024 [68] Company Strategy and Development Direction - The company is focusing on high consumer engagement channels such as CTV, mobile app, and commerce media to drive growth [14][40] - Investments in product innovation and generative AI are expected to enhance operational efficiency and customer engagement [17][36] - The strategy includes diversifying revenue streams and increasing the value of ad impressions through data curation [34][95] Management's Comments on Operating Environment and Future Outlook - Management anticipates a challenging first half of 2025 due to a DSP headwind but expects underlying business growth of 15%+ year-over-year [61][72] - The company is confident in its ability to execute its growth strategy and deliver healthy margins [72] - The shift towards sell-side targeting is seen as a significant opportunity, driven by the decline of third-party cookies [90][92] Other Important Information - The company ended 2024 with $141 million in cash and marketable securities and no debt [48][60] - A share repurchase program has resulted in an 8% reduction in fully diluted shares outstanding [48][60] - The company is targeting a full-year adjusted EBITDA margin in the high 20% range for 2025 [70] Q&A Session Summary Question: Can you talk about month-on-month trends and overall CPM trends? - Management noted that the softness in Q4 was primarily due to one DSP's bidding changes, while CPMs were positive throughout the year [76][78] Question: Why is the impact limited to display, and is there a need to address the relationship with the DSP? - The impact is due to a structural change in the DSP's bidding approach, which has historically affected display formats [84][86] Question: What are the secular shifts in the industry driving the data opportunity? - The industry is shifting towards sell-side targeting due to the decline of cookies and the strength of first-party data [90][92] Question: Can you discuss the success and growth of Activate? - Activate has seen 6x growth year-over-year, simplifying the digital advertising supply chain and driving performance [112][114] Question: What is the outlook for CTV and its evolution? - CTV is transitioning towards programmatic buying, with significant opportunities in auction packages and managing yield for publishers [134][136]