Trade Desk

The Trade Desk has become a leader in connected TV advertising, with nearly half of all money spent on its platform now going to streaming services. As more viewers abandon traditional cable for streaming platforms, The Trade Desk's technology helps advertisers reach these audiences with targeted ads that drive better results than old-fashioned TV commercials.

While most ad tech companies struggle internationally, The Trade Desk's business outside North America has grown faster than its domestic business for eight straight quarters. This global expansion opens up massive new markets as the company helps brands reach consumers worldwide with the same precise targeting and measurement that made them successful in the U.S.

For the first time in over eight years as a public company, The Trade Desk missed its revenue targets because of mistakes made while reorganizing its teams and systems. Management admitted they "turned over the ball too many times" while trying to prepare for future growth, creating uncertainty about how quickly they can fix these internal issues.

Advertising is often the first expense companies cut during economic uncertainty, and current fears about tariffs and recession have already led to reduced growth forecasts for the ad industry. Although The Trade Desk's targeted approach typically performs better during downturns, a severe advertising pullback could still hurt their growth in the coming quarters.