These growth, value, and income stocks (some of which I already own) are inexpensive amid a historically pricey stock market.With just a handful of trading days left in 2025, it would appear investors have ample reason to smile. Through the closing bell on Dec. 24, the mature stock-driven Dow Jones Industrial Average, benchmark S&P 500, and growth-dominated Nasdaq Composite have soared by 15%, 18%, and 22%, respectively.But investing on Wall Street isn't about looking in the rearview mirror at where we've b ...

Key Takeaways AppLovin's shift from mobile-first ads accelerates with expansion into web advertising and CTV.Wurl boosts AppLovin's ability to deliver targeted CTV campaigns and enhance AXON's reach.AppLovin aims to unify mobile, web and CTV ads to diversify revenues and strengthen resilience.AppLovin Corporation’s (APP) evolution from a mobile-first ad platform to a diversified advertising powerhouse is accelerating, supported by its expansion into web advertising and connected TV (CTV). A key catalyst beh ...

Core Thesis - The Trade Desk, Inc. (TTD) is positioned as a leading independent player in the programmatic advertising space, leveraging its AI-driven Kokai platform and strong partnerships in connected TV (CTV) to maintain a competitive edge [2][3]. Company Overview - TTD operates within a $1 trillion global advertising market, serving as a demand-side platform that utilizes AI for targeting and optimization, achieving a customer retention rate consistently above 95% [2]. - The company benefits from a strong economic moat characterized by economies of scale, a self-reinforcing network effect, proprietary intellectual property, high switching costs, and strong brand recognition [2]. Technology and Innovation - TTD's Unified ID 2.0 and Kokai platform manage two-thirds of client spending, enhancing privacy-compliant targeting and measurable outcomes [3]. - Additional tools like Deal Desk, OpenPath, and retail media integrations further expand TTD's performance capabilities [3]. Financial Performance - Revenue growth has slowed from 25.5% year-over-year to 18.6% in Q2 2025, raising concerns about growth momentum despite strong performance in Q1 [3]. - The company maintains a healthy balance sheet with $1.68 billion in cash and minimal debt, allowing for strategic share repurchases and ongoing innovation [3]. Valuation and Market Position - TTD's stock trades near historical lows, with a forward EV/Sales ratio of 8.1x and a P/E ratio of 27.7x, indicating potential undervaluation compared to peers, especially given its robust free cash flow and growth prospects [4]. - Key catalysts for future growth include the continued adoption of the Kokai platform, increased spending in CTV and retail media, and international expansion, which currently accounts for 14% of total spend [3][4]. Market Sentiment - Previous analyses have highlighted TTD's market leadership, high customer retention, and strong revenue growth, despite a recent stock depreciation of approximately 8.6% since May 2025 [5]. - The current bullish perspective emphasizes TTD's economic moat, adoption of Kokai, and potential for international growth [5].

Core Insights - The S&P 500 has reached record highs in 2025, but some individual stocks have experienced significant declines, with the worst performers losing between 47% and 62% of their value this year [1][2]. Group 1: Worst Performing Stocks - The Trade Desk (NASDAQ: TTD) is the worst performer, down 62.2% due to concerns over ad spending and competition, yet it maintains a strong position in programmatic advertising and high client retention [2][3]. - Lululemon Athletica (NASDAQ: LULU) has dropped 55.6% as North American demand slows, but it continues to show strong margins and brand loyalty while expanding internationally [2][7]. - Centene Corp. (NYSE: CNC) is down 47.6% amid regulatory uncertainty and reimbursement concerns, but it remains a major provider of government-backed healthcare plans with a diversified portfolio [2][11]. Group 2: Investment Opportunities - The Trade Desk's stock is trading at multi-year lows, presenting potential upside once industry challenges are resolved, currently priced at $44.47 [4]. - Lululemon's stock correction may offer a discounted entry point into a globally recognized brand, currently valued at $169.62 [8]. - Centene's scale and cost efficiency suggest that its recent selloff may be sentiment-driven, with potential for recovery once policy risks stabilize, last valued at $31.77 [13].

Core Viewpoint - The Trade Desk is positioned to benefit from three significant megatrends in digital advertising, despite facing short-term challenges such as slower growth and increased competition [1] Group 1: Connected TV (CTV) - The U.S. connected TV ad spend is projected to grow from $30 billion in 2024 to nearly $40 billion by 2027, with a global market expected to expand from $268 billion in 2024 to $531 billion by 2030, indicating a substantial opportunity for The Trade Desk [3][4] - The Trade Desk operates as an independent demand-side platform, providing advertisers access to premium streaming inventory across various publishers, which positions it favorably against competitors like YouTube and Facebook [3][4] - The company’s partnerships with major streaming services such as Disney+ and Netflix, along with its Unified ID 2.0 initiative, enhance its competitive edge in the CTV space [3] Group 2: Retail Media - Retail media is emerging as a new advertising frontier, allowing brands to place ads directly on retailer websites and apps, which is more effective due to the use of first-party purchase data [5][6] - The global retail media market is expected to reach $177 billion by 2025, indicating rapid growth in this advertising channel [6] - The Trade Desk has established itself in this sector by powering retailer ad networks outside of Amazon, exemplified by its partnership with Walmart Connect [7][8] Group 3: International Expansion - The Trade Desk currently generates most of its revenue in the U.S., but the international advertising market presents a significant growth opportunity, with global digital ad spend projected to reach $1.1 trillion by 2025 [9][10] - Only 12% of The Trade Desk's revenue comes from international markets, highlighting the potential for substantial growth if the company can replicate its U.S. success abroad [9][10] - Capturing even a small share of the global ad spend outside the U.S. could result in tens of billions in additional revenue capacity for The Trade Desk [10] Group 4: Long-term Growth Potential - Despite current challenges, The Trade Desk is at the center of three rapidly growing areas in digital advertising: CTV, retail media, and international expansion, which are expected to drive long-term growth [12] - These markets collectively represent several hundred billion dollars of addressable spend in the coming years, positioning The Trade Desk as a leading independent DSP [12][13] - The company does not need to dominate every segment but must remain a trusted alternative to larger competitors, which is crucial for patient investors [13]

Core Insights - The Trade Desk reported Q2 2025 GAAP revenue of $694 million, a 19% increase year-over-year, exceeding Wall Street estimates of $685.47 million [1][5] - Non-GAAP earnings per share for Q2 2025 were $0.41, significantly above the expected $0.18, reflecting strong topline performance [1][5] - Despite revenue growth, the company experienced margin compression due to rising operating costs, with adjusted EBITDA margin declining from 41% in Q2 2024 to 39% in Q2 2025 [1][5] Financial Performance - Q2 2025 GAAP revenue was $694 million, up from $585 million in Q2 2024, marking an 18.6% year-over-year increase [2] - Non-GAAP EPS increased by 5.1% from $0.39 in Q2 2024 to $0.41 in Q2 2025 [2] - Adjusted EBITDA grew 12% year-over-year to $271 million, while GAAP net income rose to $90 million from $85 million in Q2 2024 [2][5] Business Model and Strategy - The Trade Desk operates as an independent buy-side partner, focusing on programmatic digital advertising without owning media supply, which has helped retain over 95% of clients for 11 years [3][4] - The company emphasizes leadership in connected TV (CTV) advertising and innovation through AI-powered tools, such as the Kokai platform, which has improved campaign performance for users [4][6] - Investment in privacy and transparency is a strategic priority, with initiatives like Unified ID 2.0 and OpenPath enhancing audience targeting and supply chain transparency [8][9] Market Position and Growth - The Trade Desk continues to gain market share in programmatic advertising, with significant growth attributed to its long-term strategy and product upgrades [6] - The Kokai platform is utilized by about two-thirds of clients, leading to a 24% reduction in cost per conversion and a 20% decrease in cost per acquisition [6] - The company is expanding its omnichannel reach through new partnerships and international growth, particularly in retail media [7] Operational Insights - Operating costs increased by 36.7% year-over-year, contributing to margin compression despite higher adjusted EBITDA [10] - The company reported $1.7 billion in cash and short-term investments with no debt, indicating a strong financial position [10] - Share repurchases totaled $261 million, supporting shareholder returns and offsetting dilution from stock-based compensation [10] Future Outlook - For Q3 2025, management projects revenue of at least $717 million and adjusted EBITDA of around $277 million [11] - The company will continue to invest in AI, product capabilities, and transparency tools while navigating macroeconomic uncertainties affecting advertising budgets [12]

Core Insights - The Trade Desk Inc. (TTD) will join the S&P 500 on July 18, 2025, replacing ANSYS Inc. (ANSS), which is being acquired by Synopsys Inc. (SNPS) [1] - Following the announcement, TTD shares rose by 6.6% to $80.40, indicating strong investor sentiment [1] - TTD operates a leading demand-side platform (DSP) focused on data-driven advertising, aiming for revenue growth and profitability through its Connected TV (CTV) offerings and flagship products [2] Company Overview - TTD is positioned to benefit from the projected growth in the global digital ad spending market, expected to reach $1,483 billion by 2034, with a CAGR of 9.47% from 2025 to 2034 [3] - The company is focusing on expanding its global footprint and partnerships while maintaining its innovation edge [2][3] Financial Performance - For Q2, TTD anticipates revenue of at least $682 million, reflecting a 17% year-over-year growth, despite macroeconomic challenges [4][10] - Adjusted EBITDA is projected to be around $259 million [4] - TTD's shares have increased by 59.9% over the past three months, outperforming the Zacks Internet-Services industry and S&P 500 composites, which rose by 20.6% and 18.2%, respectively [11] Competitive Landscape - TTD competes with major players like Amazon (AMZN) and Alphabet (GOOGL) in the ad tech space, focusing on independent, cross-channel programmatic buying [5][7] - While Amazon leverages its first-party data for targeted ads, TTD offers a neutral ad platform targeting the open internet, which is particularly relevant in ad-supported streaming [7] Valuation Metrics - TTD currently trades at a forward price-to-sales ratio of 12.57X, significantly higher than the industry average of 5.44X [12] - The Zacks Consensus Estimate for TTD's earnings has remained stable over the past 60 days, with no revisions [13][14]

Company Overview - The Trade Desk, Inc. (TTD) anticipates revenues of at least $682 million for Q2 2025, reflecting approximately 17% year-over-year growth, a slowdown from the 25% growth recorded in Q1 2025, indicating a potential maturation in its growth cycle [1] - Rising operating expenses surged 21.4% year-over-year to $561.6 million, primarily due to investments in enhancing platform capabilities [3] - TTD's adjusted EBITDA is expected to be $259 million, with a margin of nearly 38%, which is 400 basis points higher than in Q1 2025, attributed to targeted investments in infrastructure and talent [6] Market Conditions - The company faces rising macroeconomic uncertainty and escalating trade tensions, which could impact advertising budgets and programmatic demand, particularly affecting large global brands [2] - The growth in Connected TV (CTV) adoption is a significant driver for TTD's growth strategy, with global ad spend projected to rise in CTV and retail media [4] Innovation and Product Development - TTD's flagship products, including Kokai, Unified ID 2.0, and OpenPath, are gaining traction, with two-thirds of clients using the AI platform Kokai, which has reduced costs per conversion by 24% and per acquisition by 20% [5] Competitive Landscape - Taboola.com Ltd. (TBLA) reported Q1 revenues of $427 million, a 3% increase, with expectations for Q2 2025 revenues between $438 million and $458 million, indicating a solid growth trajectory [7] - PubMatic, Inc. (PUBM) expects Q2 revenues between $66 million and $70 million, focusing on high-growth segments like CTV and maintaining financial discipline with projected adjusted EBITDA of $9 million to $12 million [8] Valuation Metrics - TTD's shares have decreased by 23.3% over the past year, contrasting with the Zacks Internet -Services industry's decline of 1.4% [11] - The company trades at a forward price-to-sales ratio of 11.86X, significantly higher than the industry's average of 5.31X [12]

Core Insights - The Trade Desk (TTD) has achieved significant international growth, outpacing North America for the ninth consecutive quarter, with North America still accounting for 88% of advertising spend [1][9] - Connected TV (CTV) is a major growth driver for TTD, with over 90 million households reached and strong performance in international markets, particularly in Europe and Asia [2][9] - TTD's AI platform, Kokai, is gaining traction, with two-thirds of clients using it, leading to a reduction in costs per conversion and acquisition [3][9] Company Performance - TTD expects revenues of at least $682 million for Q2 2025, reflecting a 17% year-over-year growth, assuming stable market conditions [4] - Adjusted EBITDA is projected to be around $259 million for the same quarter [4] - TTD's shares have decreased by 28.7% over the past year, contrasting with a 4.3% decline in the Zacks Internet-Services industry [10] Market Outlook - The global digital ad spending market is projected to reach $1,483 billion by 2034, growing at a CAGR of 9.47% from 2025 to 2034, with TTD well-positioned to benefit from this growth [5] - The rise of CTV and retail media is expected to drive increased ad spending, providing TTD with opportunities to expand its international revenue base [5] Competitive Landscape - Competitors like Magnite Inc. and PubMatic, Inc. are also experiencing growth in the CTV space, with significant contributions to their revenues from programmatic ad spending [6][7] - Magnite reported a 19% year-over-year increase in CTV contribution, while PubMatic has achieved over 80% adoption among top streaming platforms [6][7] Valuation Metrics - TTD trades at a forward price-to-sales ratio of 10.79X, which is higher than the industry average of 5.01X [11] - The Zacks Consensus Estimate for TTD's earnings has remained unchanged over the past 30 days [12]

Industry Overview - The ad tech industry is experiencing solid growth and has significant upside potential, driven by advancements in connected TV, retail media, better ad targeting, and AI improvements [2] - Major players like Alphabet and Meta Platforms are leading the industry, but there are other companies also benefiting from this growth [2] Company: Roku - Roku's stock price has declined over 80% from its peak in 2021 due to a post-pandemic slowdown in the streaming industry [4] - The company has undergone layoffs and a business reset but is now positioned for growth, with a 16% year-over-year revenue increase to $1.02 billion in the first quarter [6] - Roku's stock price surged after announcing an exclusive integration with Amazon's demand-side platform, indicating potential market share gains [7] - With a market cap of $11 billion, Roku is well-positioned to capitalize on the growth in connected TV, with the potential for significant stock price appreciation [8] Company: The Trade Desk - The Trade Desk is a leading independent demand-side ad tech platform known for its innovative technologies, including its AI platform Kokai and cookieless tracking protocol [9] - The stock is currently trading down 50% from its peak, presenting a buying opportunity, despite a disappointing earnings report in February [10] - In the first quarter, The Trade Desk reported a 25% year-over-year revenue growth to $616 million, demonstrating resilience in various market conditions [11] - The company is well-positioned for continued growth, supported by its cookieless tracking solution and expanding customer ecosystem [12]