Trade Desk’s Competitive Edge: A Buy Opportunity Amid Market Share Concerns

Laura Martin, an analyst from Needham, maintained the Buy rating on Trade Desk (TTD – Research Report). The associated price target remains the same with $84.00.

Laura Martin’s rating is based on several compelling factors that highlight Trade Desk’s competitive edge over Amazon’s DSP. Despite recent declines in TTD’s stock due to concerns over market share loss to Amazon, Martin sees this as a buying opportunity. One of the primary reasons is Trade Desk’s structural advantages, particularly in handling proprietary first-party data. Many large advertisers prefer TTD because they are reluctant to share sensitive data with Amazon, which they view as a competitor. This reluctance gives Trade Desk a significant advantage in targeting non-customers effectively.
Additionally, Trade Desk’s platform is comprehensive, offering advertisers the ability to buy ads across all devices and digital media categories at scale, unlike Amazon’s more limited offering. Trade Desk is not confined to a ‘Walled Garden,’ allowing it to optimize return on ad spending across a vast array of websites in the open internet, a flexibility Amazon lacks. Furthermore, Amazon’s DSP is incentivized to allocate ad spend to its own media properties, which might not always offer the best return on investment for advertisers. These factors collectively underscore Martin’s confidence in Trade Desk’s market position and potential for growth.

Martin covers the Communication Services sector, focusing on stocks such as Roku, Magnite, and Perion Network. According to TipRanks, Martin has an average return of 4.1% and a 46.40% success rate on recommended stocks.

In another report released on May 27, Citi also assigned a Buy rating to the stock with a $82.00 price target.