"According to The Information, The Trade Desk and OpenAI are discussing a potential partnership, which could be huge if ChatGPT becomes the kind of ads powerhouse that Google Search is. As a demand-side platform (DSP), Trade Desk helps aggregate, automate, and optimize ad-buying for brands, and as an independent platform, it could hold appeal for OpenAI."
"At this point, this seems like a preliminary report on a potentially promising partnership rather than any sort of clear tailwind for the company. Given that, there's not enough here to significantly alter The Trade Desk's value proposition. The stock has gotten much cheaper as it's plunged more than 80%, but The Trade Desk will need more to stem the slowdown."
The Trade Desk shares jumped significantly following reports of discussions with OpenAI regarding advertising partnerships on ChatGPT. As a demand-side platform, The Trade Desk aggregates and optimizes ad-buying for brands, making it an attractive independent partner for OpenAI compared to competitors like Google or Amazon. However, the stock has declined over 80% due to slowing revenue growth and market share losses to major platforms. While the potential ChatGPT partnership could provide an AI foothold, analysts caution that this alone is insufficient to reverse the company's trajectory. The Trade Desk requires broader business stabilization and revenue growth acceleration to achieve a meaningful comeback.
Read at The Motley Fool
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