Shares of Trade Desk Inc are up roughly 4% to $134.13 in the month of December. The stock has seen volatility this month amid reports of a potential merger with streaming giant Roku Inc (NASDAQ:ROKU).
The speculation arises as Trade Desk expands in the connected TV (CTV) market with the launch of its Ventura OS on November 20.
What To Know: Analysts at Guggenheim Securities recently highlighted the strategic appeal of combining Trade Desk's demand-side advertising platform with Roku's global streaming footprint across 85 million households, enhancing their competitive position in the CTV space.
The merger could strengthen Trade Desk's Ventura OS ambitions while boosting Roku's advertising monetization, potentially making the combined entity a formidable rival to Alphabet Inc and Amazon.com Inc.
However, challenges remain. Roku's CEO Anthony Wood, who holds significant voting shares, must approve any deal. Analysts warned of potential conflicts for Trade Desk in treating advertising clients fairly.
While no official talks have been confirmed, the news highlights overlapping goals as TTD competes against giants like Amazon and Alphabet.
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Is TTD A Good Stock To Buy?
When deciding whether to buy a stock, there are some key fundamentals investors may want to consider. One of these factors is revenue growth. Buying a stock is essentially a bet that the business will continue to grow and generate profits in the future.
Trade Desk has reported average annual revenue growth of 33.75% over the past 5 years. Looking forward, the company most recently said it expects FY24 revenues of $2.37B.
It's also important to pay attention to valuation when deciding whether to buy a stock. Trade Desk has a forward P/E ratio of 99.01. This means investors are paying $99.01 for each dollar of expected earnings in the future. The average forward P/E ratio of Trade Desk's peers is 25.13.
Other important metrics to look at include a company's profitability, balance sheet, performance relative to a benchmark index and valuation compared to peers. For in-depth analysis tools and important financial data, check out Benzinga PRO.
TTD has a 52-week high of $141.53 and a 52-week low of $61.48.
