The Trade Desk, Inc. (TTD) reported strong momentum in connected TV (CTV) advertising, indicating a long-term growth opportunity as the shift from linear television progresses. In its latest earnings call, TTD noted that CTV represented over 50% of its business in the first quarter of 2026 and is anticipated to grow as advertisers become more data-driven. The company also highlighted its focus on AI-driven decision-making and advancements in advertising measurement, essential for attracting advertisers to premium channels.
Despite the challenging macroeconomic environment, TTD believes sophisticated advertisers are creating opportunities within its platform. The total addressable market is expanding due to trends in retail media and AI technology. TTD’s forward price-to-sales ratio stands at 2.78, significantly lower than the industry average of 7.63, indicating potential attractiveness for investors.
In the past year, TTD’s shares have declined by 75.3%, contrasting with an 83.9% rise in the Zacks Internet -Services industry. However, the Zacks Consensus Estimate for TTD’s earnings has increased over the past month, currently reflecting a Zacks Rank of #3 (Hold).
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