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Should I Invest In The Trade Desk Stock Right Now?

Netflix might be getting into advertising, and while users are displeased, it could be a big win for The Trade Desk.

When you think of advertising, you’re likely generating an image in your head of Dom Draper-esque men in suits, billboards, Times Square, and Facebook. 

The reality is a lot more boring, but a helluva lot more profitable…

The puppetmaster of online advertising.

This article is a preview of May’s Stock of the Month Podcast, which is where our analysts discuss their top pick for the month. If you want to check out our expert Insight on The Trade Desk, sign up for a free account and 7-day free trial today in MyWallSt

Following its disastrous Q1 subscriber loss, Netflix appears to be toying around with the idea of advertising on its platform. This leaves the door open for The Trade Desk to welcome the world’s premier streaming service to its roster of clients. 

That is, of course, an assumption that Netflix will use The Trade Desk. This seems more of a when than a but though, as TTD is the world’s largest demand side platform (DSP), giving advertisers the ability to target the customers they want through the channels they want, whether it be display, audio, mobile, or connected TV. 

Netflix’s move to introduce an ad-supported price tier will only accelerate the decline in linear ad budgets — think traditional TV — while the likes of Discovery+, HBO, Hulu, and Disney+ have moved into, or plan to move into the AVOD (Advertising-based Video On Demand) landscape.

And, while we all hate ads — or at least I do — it looks like streaming giants are going to move that way regardless. After all, there are a finite number of potential customers, which is getting smaller amidst increased competition for eyeballs. To many of these potential subscribers, it will be much more economical to put up with a couple of minutes of ads per show and pay cheaper prices, than fork out as much as $15 a month per subscribed service.

Still a young company, and it’s very early days in AVOD, but The Trade Desk boasts the biggest advertising agencies in the world and has a 95% retention rate over the last eight consecutive years. 

To find out why it’s such a top stock today, check out our latest Stock of the Month, which is available in the MyWallSt app today

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