Can The Trade Desk (TTD) Leverage Its New Partnerships to Redefine Connected TV Advertising?

• In recent days, The Trade Desk announced plans to launch Audience Unlimited, an AI-powered upgrade to its third-party data marketplace, and revealed a collaboration with DIRECTV to create a custom Ventura TV OS with integrated streaming features for broader market reach. Together, these initiatives are intended to make third-party data more accessible for advertisers and expand Trade Desk’s opportunities in the connected TV ecosystem.
• The partnership with DIRECTV not only expands Trade Desk’s connected TV footprint but also signals a push for more transparent and integrated advertising solutions across multiple platforms and industries.
• We'll examine how the Audience Unlimited launch could influence Trade Desk's position as an innovator in data-driven digital advertising.

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Trade Desk Investment Narrative Recap

To own shares of The Trade Desk, you need to believe in the durable shift of advertising budgets toward data-driven and connected TV (CTV) channels, where the company seeks to differentiate itself with transparent, AI-powered solutions and broad industry partnerships. While recent announcements like Audience Unlimited and the DIRECTV collaboration speak to innovation and expanded CTV reach, near-term performance remains most sensitive to large advertiser budget swings, especially in automotive and CPG, which currently limit short-term growth visibility. Fundamentally, the newly announced products and alliances support the company's longer-term vision but are not expected to materially change this immediate risk to revenue.

Among the latest announcements, the launch of Audience Unlimited stands out for its potential to streamline and scale third-party data usage for advertisers. By harnessing AI-driven segment curation and offering more predictable pricing, this upgrade could strengthen Trade Desk’s value proposition as ad budgets increasingly prioritize measurable, high-ROI campaigns, a theme central to the company’s principal catalysts.

Yet, in contrast to all the innovation headlines, investors should be aware that revenue concentration among a handful of major industry clients remains a...

Read the full narrative on Trade Desk (it's free!)

Trade Desk's narrative projects $4.3 billion in revenue and $823.2 million in earnings by 2028. This requires 17.1% yearly revenue growth and an earnings increase of $406 million from $417.2 million today.

Uncover how Trade Desk's forecasts yield a $72.52 fair value, a 41% upside to its current price.

Exploring Other Perspectives

Thirty-seven retail investors in the Simply Wall St Community estimate Trade Desk's fair value between US$39.48 and US$111.31 per share. With major client budget swings still the central risk, you can see why views on future performance differ so widely.

Explore 37 other fair value estimates on Trade Desk - why the stock might be worth 23% less than the current price!

Build Your Own Trade Desk Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Trade Desk research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Trade Desk research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Trade Desk's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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