5 Best Adtech Stocks To Buy According To Hedge Funds

3. The Trade Desk, Inc. (NASDAQ:TTD)

Number of Hedge Fund Holders: 37

The Trade Desk, Inc. (NASDAQ:TTD) is a California-based technology company that operates a self-service cloud platform that allows buyers to create, manage, and optimize data-driven digital advertising campaigns across different ad formats and channels, including display, video, audio, native, and social. The Trade Desk, Inc. (NASDAQ:TTD) is one of the top adtech stocks to invest in. On November 9, the company reported a Q3 non-GAAP EPS of $0.26 and a revenue of $394.77 million, outperforming Wall Street estimates by $0.03 and $8.24 million, respectively. 

On December 20, Piper Sandler analyst Matt Farrell initiated coverage of The Trade Desk, Inc. (NASDAQ:TTD) with an Overweight rating and a $60 price target. The Trade Desk, Inc. (NASDAQ:TTD) is a leading, independent demand side platform that allows media buyers to bid on programmatic ad impressions in digital settings, the analyst told investors in a research note. 

According to Insider Monkey’s data, 37 hedge funds were bullish on The Trade Desk, Inc. (NASDAQ:TTD) at the end of Q3 2022, compared to 34 funds in the prior quarter. D E Shaw is the largest stakeholder of the company, with 3.90 million shares worth $233 million. 

Here is what Baron Funds specifically said about The Trade Desk, Inc. (NASDAQ:TTD) in its Q3 2022 investor letter:

“The Trade Desk, Inc. (NASDAQ:TTD) is the leading internet advertising demand-side platform, enabling agencies and companies to buy and track digital advertising. The company reported 35% growth in sales, a terrific result in a softening advertising market, and the shares rose. EBITDA margins were 37% in the quarter, and cash flow also beat expectations. The company is benefiting from the growth in advertising on Connected TV and advertisers’ desire to work with Trade Desk, as a neutral service provider, as opposed to Google who does not share critical data with its partners/advertisers. Also, Netflix announced that it would be offering a tier of service that includes advertising, which is a seminal moment in the development of digital advertising and a big growth opportunity for Trade Desk. Though it is an expensive stock on near-term estimates, we believe Trade Desk can continue to compound its EBITDA and EPS at a 25% to 30% clip into the future, creating significant value in time.”