5 Best Advertising Stocks To Invest In

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

Number of Hedge Fund Holders: 34

The Trade Desk, Inc. (NASDAQ:TTD) is a California-based technology company that develops an on-demand platform allowing users to create, manage, and optimize data-driven digital advertising campaigns across various ad formats and channels, including display, video, audio, native, and social on multiple devices. 

On October 5, Susquehanna analyst Shyam Patil said The Trade Desk, Inc. (NASDAQ:TTD) remains a must-own name, supported by a multi-pronged, multi-year secular growth story. He noted that the primary drivers, CTV in both US and international, shopper marketing, Solimar, international, and UID2, are gaining momentum, and he sees a meaningful future upside. The analyst reiterated a Positive rating and a $95 price target on The Trade Desk, Inc. (NASDAQ:TTD) shares.

According to Insider Monkey’s data, 34 hedge funds were bullish on The Trade Desk, Inc. (NASDAQ:TTD) at the end of June 2022, with combined stakes worth about $544 million. Zevenbergen Capital Investments is the biggest position holder in the company, with 3.3 million shares valued at $138 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.”

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