The Trade Desk Inc (TTD)

[Loudude117]

$5,000 Invested in These 3 Stocks Should Make You a Fortune Over the Next 10 Years

https://www.fool.com/investing/2020/04/12/5000-invested-in-these-3-stocks-should-make-you-a.aspx

3. The Trade Desk
There's also another big trend under way that could have escaped your attention. The days of personal negotiations to place advertising spots are numbered as advertising agencies turn to programmatic advertising, which uses software applications to buy ads quickly and cost-effectively. The Trade Desk (NASDAQ:TTD) is the clear leader in buy-side programmatic advertising.

The most significant catalyst for The Trade Desk is the rise of connected TV (CTV). CTV includes all of the streaming services that have gained widespread popularity. Not all of them use ad-based models, but quite a few of them do. The Trade Desk CEO Jeff Green recently said that "we are in the middle of a once-in-a-lifetime consumer shift to connected devices and streaming content." And that consumer shift presents a huge opportunity for his company.

Programmatic advertising still only represents a small part of the total ad market. But with programmatic ad spending growing five times as fast as overall ad spending, it won't take too long before it makes up a big share of the market. The Trade Desk stands to benefit from this growth.

Shares of The Trade Desk plunged as much as 49% during the coronavirus-fueled market sell-off before rebounding somewhat. It's likely that some advertisers could cut their marketing budgets to save costs during this challenging period. But the long-term prospects for The Trade Desk remain very bright. My view is that buying this stock now at a discount should set up investors for terrific returns over the next decade.