7 Best Marketing Stocks to Buy According to Hedge Funds

2. 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)