The Trade Desk operates an independent platform for media buyers. It helps them plan, measure, and optimize digital ad campaigns and has advanced data and measurement capabilities.
This gives it an edge in retail media and connected TV (CTV) advertising. Unlike Google and Meta, The Trade Desk doesn’t own ad inventory. This allows it to stay neutral and trustworthy to ad buyers and publishers.
In the latest quarter, The Trade Desk’s revenue rose 22% to $741 million. But it missed the company’s own guidance. Non-GAAP net income went up 44% to $0.59 per diluted share.
CEO Jeff Green said the revenue miss was due to minor execution issues, which have been fixed. Morgan Stanley analyst Matthew Cost sees the stock’s drop as a great buying opportunity.
Wall Street predicts The Trade Desk’s earnings will grow 21% annually through 2026. Its current valuation seems high, but its future potential could justify it. Datadog is a top observability software company.
Its products help businesses monitor apps and IT infrastructure performance.
trade desk’s ad neutrality benefits
The platform supports collaboration between development and operations teams.
This boosts productivity. Datadog was recently named a leader in observability and digital experience monitoring. It’s set to gain from the rising complexity of IT environments.
This is driven by cloud migration and artificial intelligence (AI). Datadog beat expectations in its latest financial report. Revenue increased 25% to $738 million.
Net income rose 11% to $0.49 per diluted share. However, the company forecast slower revenue growth, which temporarily caused the stock to dip.
Wall Street expects Datadog’s earnings to grow 22% annually through 2027. Given its history of beating expectations, the current valuation may seem cheap later on. For investors with a 3-5-year horizon, Datadog and The Trade Desk are compelling opportunities.
Both companies are well-positioned in growing markets. They have strong performance forecasts. Investing $250 combined in these stocks could yield substantial returns by 2025.
Despite recent setbacks, analysts see them as promising long-term buys.
