2 December 2025 | 4:02PM EST Equity Research AMERICAS TECHNOLOGY: INTERNET Holiday Season 2025: Takeaways from Cyber 5 for eCommerce & Digital Advertising On the back of the Cyber 5 shopping period, we analyzed datasets and conducted industry channel checks across both the eCommerce (including 3rd party sellers) and the Digital Advertising landscape. Our work points to a few conclusions: 1) the holiday shopping period is off to a solid start relative to industry forecasts (albeit with mixed trends among var ...

Core Insights - Deep-pocketed investors are showing a bullish sentiment towards Trade Desk (NASDAQ:TTD), indicating potential significant developments ahead [1] - The options activity for Trade Desk is unusually high, with a near-even split in sentiment among investors [2] Options Activity - A total of 13 extraordinary options activities were recorded for Trade Desk, with 46% of investors leaning bullish and 46% bearish [2] - Notable options include 5 puts totaling $292,135 and 8 calls amounting to $565,659 [2] Price Projections - Big players are targeting a price range for Trade Desk between $25.0 and $50.0 over the past quarter [3] Volume and Open Interest Analysis - An analysis of volume and open interest reveals key insights into liquidity and interest levels for Trade Desk's options within the $25.0 to $50.0 strike price range [4] Largest Options Trades - Significant trades include a bullish call sweep with a total trade price of $201.5K at a strike price of $47.50 [8] - A bearish put sweep with a total trade price of $106.6K at a strike price of $35.00 [8] - Other notable trades include a bearish call trade at a strike price of $40.00 and a bullish put trade at a strike price of $50.00 [8] Company Overview - Trade Desk operates a self-service platform for advertisers to programmatically purchase digital ad inventory across various devices, generating revenue from fees based on client advertising spend [10] Analyst Opinions - Recent insights from 5 industry analysts suggest an average target price of $68.2 for Trade Desk, with individual targets ranging from $54 to $82 [11][12] Current Market Position - Trade Desk's stock price is currently at $39.21, reflecting a 0.26% increase, with a trading volume of 3,912,174 [14]

With Alphabet (GOOG) (GOOGL) poised to generate needle-moving revenue from the artificial intelligence revolution and changing hands at a relatively low valuation, the shares are a buy now. Moreover, Warren Buffett’s company, Berkshire Hathaway ((BRK.A) (BRK.B), has given Google its seal of approval, and that development should enable GOOG stock to outperform over the near to medium term. Finally, over the long term, the company could very well get a big boost from its driverless cars. About Alphabet Alp ...

Core Insights - The company has demonstrated solid growth across key areas, indicating a positive performance trend [1] - Despite the growth, investors are increasingly concerned about the rising competition risks affecting the company's market position [1] - The stock price of The Trade Desk has significantly declined in 2025, suggesting a need for positive developments to regain investor confidence [1]

Core Insights - AppLovin Corporation (APP) and Arm Holdings plc (ARM) are both positioned as leaders in the rapidly growing artificial intelligence sector, despite operating in different segments of the technology ecosystem [1][2] AppLovin Corporation (APP) - AppLovin is enhancing its advertising performance through advanced machine learning systems, focusing on app monetization and marketing automation [2] - The company is prioritizing improvements in advertiser onboarding, AI-based support tools, generative AI for ad creation, and marketing for its Axon Ads platform [3] - AppLovin is transitioning from a gaming-centric business to a more sophisticated digital advertising platform, utilizing machine learning to predict user behavior and optimize ad placements [4] - The company reported Q3 revenues of $1.41 billion, a 68% increase year-over-year, with adjusted EBITDA rising 79% to $1.16 billion, reflecting an 82% margin [6] - Free cash flow surged 92% to $1.05 billion, indicating strong cash generation capabilities [6] - AppLovin's MAX platform is experiencing growth due to rising advertiser demand and effective campaigns, solidifying its position in app-based advertising [7] - The company is projected to achieve 18% revenue growth and a 106% increase in earnings this year, showcasing significant operational leverage [14] Arm Holdings plc (ARM) - Arm Holdings is expanding its ecosystem and forming partnerships, such as with Meta, to enhance AI efficiency across various computing platforms [8] - The company is a key technology partner for major hyperscalers, with its designs contributing to improved energy efficiency and cost performance in chips [10] - Arm's Compute Subsystem (CSS) designs are streamlining chip development, reducing time-to-market and technical risks for manufacturers [11] - The Lumex CSS platform is set to power flagship devices from OPPO and vivo, enhancing mobile AI capabilities [12] - Arm reported Q2 revenues of $1.14 billion, a 34% year-over-year increase, with operating income rising 43% to achieve a 41.1% margin [13] - The company is projected to deliver 21.5% revenue growth but only a 5.5% increase in EPS, indicating a more gradual earnings expansion [17] Valuation Perspective - AppLovin trades at a forward P/E of 38.55x, slightly below its median, while Arm trades at 65.71x, reflecting high expectations for long-term AI and IoT opportunities [21] - AppLovin's stronger earnings growth and operational efficiency make its valuation more compelling compared to Arm [21] - Investors seeking near-term upside may find AppLovin to be a more attractive option, while Arm remains a strong long-term play in AI chip adoption [22]

Core Insights - Primis has achieved Open Measurement SDK Integration Validation Compliance from the IAB Tech Lab for the third consecutive year, confirming its commitment to transparency and ad quality in digital video [1][2][3] Company Overview - Primis is a leader in Video Discovery, enhancing publishers' revenue by facilitating user access to high-quality video content, reaching over 450 million unique users monthly [4] - The company is part of the McCann and IPG network, indicating strong backing and industry presence [4][5] Certification Significance - The certification verifies that Primis's video player meets the industry's strictest standards for ad viewability and impression measurement, promoting a trusted video experience for publishers, advertisers, and users [2][3] - This achievement reflects the company's dedication to building a safer and more transparent digital ecosystem [3] Additional Tools and Initiatives - Primis has developed Sellers.guide, a free tool for managing ads.txt files, aimed at promoting transparency and efficiency in programmatic advertising [5]

Core Insights - Taboola has partnered with BuzzFeed Asia to launch DeeperDive, a Gen AI answer engine designed to enhance user engagement and create new revenue streams for publishers [1][4][5] Group 1: Product Overview - DeeperDive integrates AI search capabilities directly on publisher websites, utilizing high-quality content from journalists to provide instant answers to user inquiries [2][7] - The service will initially be available in Singapore, Malaysia, and the Philippines, targeting key Southeast Asian markets [1] Group 2: User Engagement and Experience - The platform encourages users to ask questions and receive immediate, relevant answers, fostering a more interactive and engaging experience [3][7] - By offering multifaceted answers and links to related articles, DeeperDive aims to increase time spent on site and enhance reader loyalty [7] Group 3: Revenue Opportunities - DeeperDive presents a new monetization channel for publishers by allowing contextually relevant ads to be integrated into AI-generated results, capturing search-like advertising revenue [7] - This innovation positions publishers to leverage user inquiries as commercial opportunities while maintaining a seamless user experience [7]

Core Insights - The Trade Desk, Inc. (NASDAQ:TTD) is facing significant challenges, being described as one of the worst-performing stocks in the S&P 500 this year, primarily due to competition from Amazon [1][2] - Despite a 55% decline in stock value, there is a belief that TTD has potential, but the competitive landscape, particularly with Amazon, makes it a less attractive investment compared to other opportunities [2] Company Overview - The Trade Desk provides a cloud-based platform for advertisers to plan, manage, and measure digital ad campaigns across various formats and devices [2] Competitive Landscape - Amazon is identified as a major competitor to The Trade Desk, with its dominance in the market making it difficult for TTD to gain traction [1][2] - The preference for investing in Amazon over TTD is highlighted, indicating a strategic choice to avoid competition with hyperscalers like Amazon [1]

Group 1: Alphabet Overview - Alphabet has recently initiated a dividend program, increasing its payout by 5% since last year, indicating potential for a consistent dividend due to its strong business fundamentals [3][6] - The company is a leader in the digital advertising market and has seen its quarterly revenue grow by 16% year over year to $102.3 billion, marking its first time crossing the $100 billion threshold [4] - Over the past five years, Alphabet's sales have more than doubled, achieving a compound annual growth rate of approximately 15% [4] Group 2: Growth Drivers - The cloud computing segment is a significant growth driver for Alphabet, with revenue increasing by 34% year over year to $15.2 billion, although it currently represents a small portion of total sales [5] - The cloud backlog reached $155 billion, reflecting a 46% increase from the previous quarter, showcasing strong momentum in cloud and AI offerings [6] - Alphabet's ability to generate consistent free cash flow supports its dividend program, making it an attractive growth stock despite its $3.4 trillion market cap [6]

Core Viewpoint - The article discusses the investment potential of Netflix and Alphabet, highlighting that while both companies are benefiting from shifts in video consumption and internet usage, their business models and valuations suggest different investment prospects [3][12]. Group 1: Netflix Overview - Netflix's Q3 revenue increased by 17% year over year to approximately $11.5 billion, with expectations for similar growth in Q4 [4]. - The company anticipates its full-year operating margin to rise to around 29%, up from 27% the previous year [4]. - Netflix's advertising-supported plans are growing rapidly, with management projecting that advertising revenue will more than double by 2025 [6]. Group 2: Alphabet Overview - Alphabet's Q3 revenue grew by 16% year over year to about $102.3 billion, driven by strong performance in Google Search, YouTube, subscriptions, and cloud computing [8]. - The company's cloud business is experiencing significant growth, with a 46% increase in cloud backlog quarter over quarter, reaching $155 billion [11]. - AI is positively impacting Alphabet's business, particularly in its cloud segment [10]. Group 3: Comparative Analysis - Netflix is heavily reliant on subscription video, requiring substantial investment in original and licensed content, while Alphabet benefits from user-generated content on YouTube, reducing funding needs [7][11]. - Netflix has a price-to-earnings ratio of around 44, whereas Alphabet's is closer to 29, indicating that investors pay less for each dollar of Alphabet's earnings [12]. - Alphabet's diversified business model and lower valuation make it appear as the more attractive investment option compared to Netflix [12].