The Trade Desk (NASDAQ: TTD), the largest independent demand-side advertising platform, has seen impressive growth over the past few years — particularly throughout 2020. Despite the stock’s appreciation, there is likely still room for this company’s stock to climb higher over the long term.
The company helps brands place their ads strategically within various media forms, whether on a desktop, a connected television device, a podcast, or a mobile app. It generates revenue by taking a spread on the advertising slots that it purchases on behalf of brands that use The Trade Desk’s platform. For example, if it buys ad space from a media company for $0.85, and then charges the advertiser $1.00, it keeps $0.15 in profit.