The Trade Desk (TTD): Leading Digital Advertising with Innovative CTV Solutions
We recently published a list of 7 Best Marketing Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where The Trade Desk, Inc. (NASDAQ:TTD) stands against other best marketing stocks to buy.
Artificial intelligence has seeped into nearly every industry. AI in marketing is not a new concept and has been here for a while, however, it is constantly evolving and innovating. AI in marketing not only covers planning, execution, and optimization, but now it also possesses strong generative capabilities. Marketing managers are now more focused on developing comprehensive AI marketing strategies rather than traditional marketing plans.
Some of the Most Revolutionary AI Marketing Companies
Albert AI by Zoomd, Cognitiv, and Singulate are some of the most innovative AI marketing companies. These companies have technological prowess and marketing expertise that meet even the smallest needs of marketers and advertisers. Let’s take a look at their offerings.
Albert AI by Zoomd is one of the most revolutionary AI marketing companies. The marketing company is one of the few completely autonomous platforms that is self-optimizing, holistic, agile, and speedy. The platform can create plans or ads, group keywords, build campaigns, group ads, identify customers, budget, schedule, create bids, develop detailed reports, and deliver crucial insights. Most companies plan and execute manually, and let AI take care of measurement and campaign execution. Albert AI, on the other hand, takes care of everything from planning to execution and measurement.
Cognitiv is another artificial intelligence marketing company that specializes in adaptive algorithmic advertising. Its products include its demand-side platform (DSP), Curation solution, and Context GPT. DSP is an AI platform that provides custom deep learning algorithms, cross-device graphs, deep learning CTV, dynamic user profiles, advanced understanding of context, and business outcome-focused KPIs. Its Curation solution is focused on eliminating static lookalike audiences and Context GPT, on the other hand, allows users to develop custom prompts relevant to their brand and is designed to offer real-time contextual insights for advertising.
Singulate is a prominent generative AI platform used by more than 850 marketers. The company strives to solve a major problem concerning the marketing industry. Marketers tend to own large amounts of data but fail to understand what to do with it. Singulate bridges the gap allowing marketers to segment audiences and personalize content at scale. Marketing messages crafted by Singulate receive a 5x to 10x increase in response rates. On October 8, the company announced that it had raised $2.3 million in a pre-seed round of funding from angel investors and venture capitalists.
While startups are emerging as revolutionary names in marketing, some companies have a historic standing, putting them ahead of others.
Our Methodology
For this article, we sifted through ETFs, the Yahoo Finance stock screener, the Finviz stock screener, our rankings, and similar rankings on the internet. We then examined the hedge fund sentiment as of Q2 2024 for each stock and picked the most popular ones. The best marketing stocks to buy according to hedge funds are in ascending order of the number of hedge fund holders, as of Q2 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A large array of computer screens and tech equipment representing the technology company's self-service cloud-based platform.
The Trade Desk, Inc. (NASDAQ:TTD)
Number of Hedge Fund Holders: 46
The Trade Desk, Inc. (NASDAQ:TTD) is a digital marketing company that ranks second on our list of the best marketing stocks to buy according to hedge funds. The company specializes in the provision of advertising automation technologies and products that streamline digital content for advertisers of all sizes. The platform has over 500 partners including Disney Advertising, ESPN, Hulu, WSJ, TikTok, and Spotify, to name a few.
The company has a self-service platform that helps advertisers use data to target the right audience at every stage of the customer journey. The platform covers omnichannel advertising, audience targeting, identity solutions, APIs, custom solutions, and measurement and optimization solutions.
In the second quarter of 2024, Trade Desk, Inc. (NASDAQ:TTD) logged $585 million in revenue, up by 26% year-over-year. The company is known for its unique connected television (CTV) solution, which is supposedly growing the fastest. CTV is also emerging as a crucial aspect of the digital advertising space. Connected television enhances the way advertisers reach their audience using smart TVs.
Trade Desk, Inc. (NASDAQ:TTD) is not just spearheading CTV advertising but it is also part of an industry that is rapidly growing. As the need for focused data grows, more and more companies will require products and services offered by TTD.
Rowan Street Capital stated the following regarding The Trade Desk, Inc. (NASDAQ:TTD) in its Q2 2024 investor letter:
“We have owned The Trade Desk, Inc. (NASDAQ:TTD) for a little over 4 years now, opportunistically establishing a position in March of 2020 at a cost basis of $17.40 (split-adjusted). Since then, TTD has appreciated nearly sixfold, delivering an annualized return of approximately 55%. These are indeed remarkable results, but it’s important to recognize that this journey has been far from a smooth ride—much like many of our other investments. Since its public debut in 2017, the stock has experienced several significant drawdowns, with the most notable occurring in 2022 when it declined by over 60% (see below).
As we have previously discussed in relation to our investments in Meta and Spotify, one would have to be comfortable with sitting through these dramatic drawdowns and keeping their emotions in check in order to realize the long-term rewards of compounding that this company had delivered…” (Click here to read the full text)
Overall, TTD ranks 2nd on our list of best marketing stocks to buy according to hedge funds. While we acknowledge the potential of TTD as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TTD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.