"The Trade Desk operates a demand-side platform (DSP), a type of adtech software that helps media buyers plan, measure, and optimize data-driven campaigns across digital channels. The most recent version of its DSP, called Kokai, leans on artificial intelligence (AI) to manage budgets, customize bids, and dynamically target audiences. The investment thesis for The Trade Desk revolves around its independent business model, meaning it does not own media content that might bias ad spending on its platform."
"That distinguishes the company from Alphabet, Meta Platforms, and Amazon, which have a clear incentive to steer ad buyers toward their own inventory (e.g. Google, Instagram, Prime Video). In short, The Trade Desk avoids conflicts of interest inherent to adtech companies that own media content. In turn, publishers are more likely to share data with The Trade Desk, which arguably makes its measurement tools more effective when analyzing campaigns across the open internet (i.e., the decentralized network of websites and applications not owned by technology giants)."
The Trade Desk share price has fallen about 81% from its record high and currently trades near $27. The median analyst target of $50 per share implies roughly 85% upside from the current price. The company operates a demand-side platform (DSP) called Kokai that leverages artificial intelligence to manage budgets, customize bids, and dynamically target audiences. The Trade Desk’s independent business model avoids owning media inventory and the related conflicts of interest, encouraging publisher data sharing and improving cross-inventory measurement. The company is strong in connected TV and off-site retail advertising, while generative AI shifts present potential headwinds to digital-ad engagement patterns.
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