The Trade Desk: Strong Buy On Kokai's Transformative Impact

Moretus Research
566 Followers

Summary

  • We rate The Trade Desk a Strong Buy with a $132 price target, citing underappreciated compounding upside from Kokai AI adoption and CTV mix shift.
  • Kokai's rapid adoption is driving 42% lower campaign costs, margin expansion, and a flywheel of incremental spend, with OpenPath/Sincera further boosting take-rates.
  • TTD's $1.7bn net cash and $400mn annual buybacks provide downside protection and per-share lift, supporting a premium multiple and sustained outperformance.
  • Despite regulatory and adoption risks, we see 90% upside as consensus underestimates TTD's algorithmic leverage and earnings power; we recommend accumulating at current levels.

Online Advertising concept, ad on internet

anyaberkut

Next-Gen Platform, Compounding Upside

We initiate on The Trade Desk, Inc. (NASDAQ:TTD) with a Strong Buy and a $132 PT. The Trade Desk, Inc. enables agencies and brands to execute optimized digital campaigns via a cloud-based platform that powers media buying across

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Moretus Research
566 Followers
Moretus Research delivers state-of-the-art, buy-side quality equity research for serious investors seeking clarity, conviction, and alpha. Focused on U.S. public markets, Moretus applies a structured, repeatable framework to identify companies with durable business models, mispriced cash flow potential, and intelligent capital allocation. Built on institutional standards, Moretus Research combines rigorous fundamental analysis with a high-signal, judgment-driven process—eschewing noise, narrative, and overly complex forecasting. Valuation is based on pragmatic, sector-relevant multiples tailored to each company’s business model and capital structure, with an emphasis on comparability, simplicity, and relevance. Research coverage tends to favor underappreciated companies undergoing structural change or temporary dislocation—situations where dispassionate analysis and variant perception can lead to asymmetric returns. All work reflects a deep respect for capital, discipline, and long-term compounding. Moretus Research aims to raise the standard for independent investment research—providing professional-grade insights, actionable valuation, and a strong filter for what truly matters in modern equity analysis.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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