The Trade Desk: Google's Threats Are Overblown

Apr. 08, 2022 6:41 PM ETThe Trade Desk, Inc. (TTD)GOOG, GOOGL6 Comments
Taylor Irwin profile picture
Taylor Irwin
290 Followers

Summary

  • The Trade Desk (TTD) offers advertisers an innovative method of optimizing campaigns to get the most bang for their buck.
  • Their differentiated platform allows them to capture accelerating trends within advertising.
  • The company has fortified itself from competitive threats by doubling-down on CTV and building itself around the idea of a freer Internet.
  • TTD’s historically strong performance has put their stock at a premium. I look at their valuation in detail comparatively & through a DCF analysis.

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Investment Thesis

The Trade Desk (NASDAQ:TTD) is improving the way advertisers run and manage campaigns. Their innovative platform has shown to be efficacious in cutting costs and optimizing ad-targeting for its customers. The company faces obstacles, specifically

This article was written by

Taylor Irwin profile picture
290 Followers
I am a long-term oriented investor, primarily in the technology sector. I look for high-quality companies that bridge the gap between growth and value. First, I analyze the competitive environment of a company and try to identify firm-specific competitive moats. Wide-moat businesses tend to sustain high returns on capital for many years, which drives long-term shareholder returns. Then, I evaluate a firm's ability to generate free cash flows by looking at sales growth, operating margins and capital intensity. Expected future cash flows determine business value. For valuation, I use an expectations investing DCF and relative multiples approach in context of the company and its industry. Additional factors I like to see are visionary management with strong capital allocation skills, innovation leadership, and high optionality.Financial Risk Associate | BS in Finance & Statistics | CFA Level 2 Candidate.

Disclosure: I/we have a beneficial long position in the shares of TTD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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