Can The Trade Desk Dominate the Open Internet With its AI Advantage?

In an environment where walled gardens like Google, Amazon and Meta dominate ad spend, The Trade Desk, Inc. (TTD) stands out as a strong contender in the open Internet. Using AI and data transparency, it empowers advertisers to make smarter, more measurable decisions. The Open Internet is where competition and transparency drive value. Unlike walled gardens that rely on closed, owned inventory, it enables true price discovery between independent buyers and sellers. It’s also home to the most trusted and premium content from TV and movies to music, sports and news, making it the place where audiences and advertisers connect.

As consumers spend more time on premium content, The Trade Desk anticipates increasing demand for the Open Internet to capture the largest share of advertising budgets. Digital ad supply has always exceeded demand, making it a buyer’s market. This imbalance creates a growing opportunity for TTD and the Open Internet to deliver more value to advertisers. For the open Internet to grow faster than closed platforms filled with user-generated content, competition and efficient supply chains must work in its favor.

Management highlighted that AI is making the Open Internet more effective and data-driven. Every AI breakthrough depends on quality data, and an advertiser’s own customer data is their most valuable asset. The Trade Desk enables buyers to own and control their data, ensuring long-term success. As AI advances, brands that use automation wisely are moving ahead, while becoming more cautious of walled gardens that restrict transparency and seek to control advertiser data.

AI is also enhancing price discovery and efficiency across the open Internet, strengthening premium content and reducing reliance on low-quality, ad-heavy platforms. Data-driven, targeted advertising on premium content is essential for staying competitive. TTD’s continued revenue growth, CTV leadership and AI-driven innovation position it for long-term success. Flagship products like Kokai, Deal Desk and Audience Unlimited, along with strategic changes, are driving efficiency and market share gains as the company targets continued expansion across the open Internet in 2026 and beyond.

How TTD’s Rivals Stack Up Against It?

Magnite (MGNI) operates as a leading supply-side platform (SSP), helping publishers manage and monetize their ad inventory across channels, including streaming, online video, display and audio. It delivered a strong third quarter, driven by standout CTV growth of 18% ex-TAC, or 25% excluding political spend, surpassing expectations. DV+ also performed well, meeting guidance. Regarding the Google Ad tech trial, management highlighted that restoring competition and ending Google’s self-preferencing would be a major win for both the open Internet and Magnite. The company estimates that each 1% market share gain from such changes could add about $50 million in annual contribution ex-TAC with more than 90% flow-through margins.

Taboola.com Inc. (TBLA) is a global leader in performance advertising, helping businesses grow across the open web. Realize, Taboola’s new performance advertising platform, expands the company’s reach beyond native advertising into broader performance markets like display and social. Taboola is enhancing Realize with new Generative AI features, delivering measurable results for advertisers. Realize operates like Google Ads or Meta Ads, offering an easy-to-use, AI-powered platform. Unlike Google’s search or Meta’s social reach, Realize connects with 600 million people daily across top open web partners like Yahoo, NBC, ESPN and Apple News. Its edge comes from AI and first-party data based on real user interests, giving advertisers authentic insights and stronger results.

TTD’s Price Performance, Valuation and Estimates

Shares of TTD have declined 65.3% in the past year against the Zacks Internet -Services industry and S&P 500 composites’ rise of 56.3% and 16.4%, respectively.

In terms of forward price/earnings, TTD’s shares are trading at 36.6X, higher than the Internet Services industry’s ratio of 26.88.

The Zacks Consensus Estimate for TTD’s earnings for 2025 has marginally gone up over the past 60 days.

TTD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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