These 3 charts are extremely Bullish for TTD

You can see how profitable that play was on the chart below:

Now its stock is soaring to new all-time highs, driven by a combination of financial strength, market leadership, and innovative approaches to digital advertising.

But three charts give us confidence in our Bullish outlook for months to come.

Web Visits Show Serious Momentum

Visits to TTD website hit all-time highs in September and hit growth rates we haven't seen since its last heyday in 2021. This is a positive nod to usage and new customer acquisition.

Netflix's New Partnership with TTD is Likely to Fuel Growth

The chart above shows that Netflix has some serious catching up to do when it comes to ad dollars spent on its platform...the ratio of dollars spent vs. hours watched is wayyyyy off-kilter vs. peers. But make no mistake, ad dollars will follow eyeballs. And this bodes well for TTD.

In May 2024, The Trade Desk announced a partnership with Netflix, giving advertisers the ability to purchase ad space on Netflix through TTD's platform. This collaboration opens access to Netflix's 40 million global monthly active users on its ad-supported tier, offering TTD's clients opportunities to reach a highly engaged streaming audience.

Businesses Indicate Strongest Spending Interest for TTD in 2025

Brands are reporting plans redirect advertising budgets to digital platforms (including streaming) vs. traditional search ads. A recent Wedbush study found that 43% of U.S. advertisers plan to increase their digital ad spend by more than 10% year-over-year in 2025.

And The Trade Desk LEADS the pack, with more than half of businesses surveyed reporting intent to increase spending with TTD by 10% or more.

Bottom Line: TTD isn't done growing, and we expect more gains from here.

In Q2 2024, TTD saw a 26% year-over-year revenue jump to $585 million, while net income rose to $85 million, up from $33 million the previous year. This growth is bolstered by new partnerships and high levels of client loyalty. TTD's customer retention rate has exceeded 95% for over a decade.

Innovative tools such as TTD's Kokai platform and Unified ID 2.0 further bolster the stock's prospects. Kokai employs artificial intelligence to help brands deliver highly relevant ads by analyzing vast amounts of user data and activity. For instance, a sports brand might target users who have recently engaged with fitness content, ensuring that their ads are more likely to resonate. Meanwhile, Unified ID 2.0 addresses privacy concerns by using encrypted identifiers, such as email addresses or phone numbers, to target users without compromising personal data. This new approach moves away from traditional third-party cookies, offering advertisers a more secure and transparent way to connect with audiences.

TTD has seen a significant run over the last week alone. If we do see a near-term pullback after earnings, we are buyers of the dip.