OpenAI in Talks with The Trade Desk for Advertising Partnership
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy TTD?
Source: seekingalpha
- Advertising Partnership Talks: OpenAI is in early discussions with The Trade Desk to collaborate on advertising sales, aiming to leverage external partners to enhance its advertising business, which is expected to significantly boost its market competitiveness.
- Ad Testing Launch: OpenAI recently announced it will begin testing ads in ChatGPT for logged-in adult users in the U.S., covering both free and paid subscription tiers, which is anticipated to support diversification of its revenue streams.
- Significant Revenue Growth: As of the end of last month, OpenAI's annualized revenue surpassed $25 billion, marking a 17% increase from $21.4 billion at the end of last year, demonstrating its strong performance and growth potential in the market.
- Future Revenue Projections: OpenAI projects total revenue will exceed $280 billion by 2030, with nearly equal contributions from consumer and enterprise segments, indicating its increasing competitiveness in the enterprise market.
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Analyst Views on TTD
Wall Street analysts forecast TTD stock price to rise
28 Analyst Rating
15 Buy
12 Hold
1 Sell
Moderate Buy
Current: 25.000
Low
38.00
Averages
53.33
High
85.00
Current: 25.000
Low
38.00
Averages
53.33
High
85.00
About TTD
The Trade Desk, Inc. is a global advertising technology company. The Company offers a self-service, cloud-based ad-buying platform that empowers its clients to plan, manage, optimize and measure more expressive data-driven digital advertising campaigns. Its platform allows clients to execute integrated campaigns across ad formats and channels, including connected television (CTV) and other video, display, audio, and native, on a multitude of devices, such as televisions, streaming devices, mobile devices, computers and digital-out-of-home devices. Its platform’s integrations with inventory, publisher and data partners provide ad buyers reach and decisioning capabilities, and its enterprise application programming interfaces (APIs) enable its clients to customize and expand platform functionality. Its platform provides auto-optimization features that allow buyers to automate their campaigns and support them with computer-generated modeling and decision-making.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
OpenAI in Talks with The Trade Desk for Advertising Partnership
- Advertising Partnership Talks: OpenAI is in early discussions with The Trade Desk to collaborate on advertising sales, aiming to leverage external partners to enhance its advertising business, which is expected to significantly boost its market competitiveness.
- Ad Testing Launch: OpenAI recently announced it will begin testing ads in ChatGPT for logged-in adult users in the U.S., covering both free and paid subscription tiers, which is anticipated to support diversification of its revenue streams.
- Significant Revenue Growth: As of the end of last month, OpenAI's annualized revenue surpassed $25 billion, marking a 17% increase from $21.4 billion at the end of last year, demonstrating its strong performance and growth potential in the market.
- Future Revenue Projections: OpenAI projects total revenue will exceed $280 billion by 2030, with nearly equal contributions from consumer and enterprise segments, indicating its increasing competitiveness in the enterprise market.
See More
Trade Desk CEO's Major Stock Purchase Fuels After-Hours Rally
- Insider Stock Purchase: Trade Desk's CEO Jeffrey Terry Green acquired 6,398,089 Class A shares between March 2 and March 4, leading to a 9.25% increase in after-hours trading to $27.50, reflecting executive confidence in the company's future prospects.
- Transaction Price Analysis: The 6 million shares were purchased at weighted average prices ranging from $23.49 to $25.08, totaling approximately $148.1 million, indicating a strategic investment by the CEO near multi-year lows, which may attract market attention.
- Stock Awards and Options: Green also received a restricted stock award of 398,089 shares vesting over 16 quarters and stock options for 737,028 shares at an exercise price of $25, further solidifying his commitment to the company's long-term growth.
- Market Performance and Technical Indicators: With a market capitalization of $11.98 billion, Trade Desk's stock has fallen 62.77% over the past year, currently trading close to its 52-week low, yet the CEO's purchase may instill confidence among investors and improve market sentiment.
See More
TTD Shares Surge 9.3% Amid OpenAI Ad Partnership Talks
- Stock Rebound: TTD shares rose 9.3% in Wednesday's after-market session, providing relief for a company that has seen a 37% year-to-date decline, reflecting market optimism about its future collaborations.
- Market Capitalization Risk: With a current market cap of $12.2 billion, TTD is below the $22.7 billion threshold required to remain in the S&P 500, raising concerns among investors about potential removal from the index.
- Ad Revenue Projections: The potential partnership with OpenAI is expected to double ChatGPT's ad revenue to $17 billion in 2023, highlighting the strategic significance of this collaboration for TTD's future revenue growth.
- New Platform Launch: TTD unveiled the OpenTTD platform, designed to provide advertisers with centralized access to data solutions, further solidifying its position as an open and interoperable infrastructure layer in the digital advertising industry, driving long-term growth for the company.
See More
Investment Opportunities and Challenges in Tech Stocks
- Trade Desk Stock Decline: The Trade Desk's stock has plummeted over 80% since December 2024, dropping from $141 to $24.99, primarily due to economic uncertainty and data privacy regulations, although customer retention remains high at 95%.
- Sea Limited Growth Potential: Sea Limited's revenue grew by 35% to over $16 billion in the first nine months of 2025, despite a 45% drop in stock price from its highs, yet its low forward P/E ratio of 22 may attract investor interest.
- Lyft Financial Performance: Lyft reported a 15% increase in gross bookings in 2025, with revenue rising only 9%, but its free cash flow exceeded $1.1 billion, a 46% increase from 2024, and plans to allocate $1 billion for share buybacks.
- Market Overreaction: Despite intensified competition and market volatility, investors may find these tech stocks increasingly attractive as valuations improve, especially amid concerns over AI's impact on the industry, suggesting potential rebound opportunities.
See More
Low Valuations in Tech Stocks Present Investment Opportunities
- Trade Desk Valuation Drop: Since December 2024, The Trade Desk's stock has plummeted over 80% from above $141 per share to an all-time low, yet its customer retention remains above 95%, indicating resilience in the advertising sector despite challenges.
- Sea Limited Growth Potential: Sea Limited reported over $16 billion in revenue for the first nine months of 2025, a 35% increase, although its stock has dropped approximately 45% since September, its strong market position in Southeast Asia remains intact.
- Lyft Stock Volatility: Lyft's stock has lost about 45% since November 2022, despite a 15% increase in gross bookings for 2025 and free cash flow exceeding $1.1 billion, suggesting potential for future growth.
- Investor Sentiment Shift: Following the AI boom, investor confidence in tech stocks has waned; however, the low valuations of The Trade Desk and Sea Limited may present opportunities for investors to reassess and enter the market.
See More
Alphabet's Strong Earnings Contrast with Trade Desk's Disappointing Guidance
- Alphabet's Accelerating Performance: In its fourth quarter, Alphabet reported an 18% year-over-year revenue increase to $113.8 billion, accelerating from 16% growth in the previous quarter, showcasing strong performance in Google Services and cloud computing, thereby reinforcing its market leadership.
- Cloud Business Surge: Google Cloud's revenue soared 48% year-over-year to $17.7 billion in the fourth quarter, driven by the ongoing adoption of AI infrastructure, indicating Alphabet's rapid expansion in high-margin sectors.
- Trade Desk's Slowing Growth: The Trade Desk reported fourth-quarter revenue of $847 million, up 14% year-over-year, but noted that growth would have been closer to 19% without the irregular nature of U.S. political ad spending, highlighting a deceleration in its growth momentum.
- Uncertain Outlook: The Trade Desk's first-quarter revenue guidance of at least $678 million implies only about 10% year-over-year growth, and the adjusted EBITDA guidance suggests a decline in key profitability metrics, reflecting the challenges it faces.
See More
OpenAI in Talks with The Trade Desk for Advertising Partnership
- Advertising Partnership Talks: OpenAI is in early discussions with The Trade Desk to collaborate on advertising sales, aiming to leverage external partners to enhance its advertising business, which is expected to significantly boost its market competitiveness.
- Ad Testing Launch: OpenAI recently announced it will begin testing ads in ChatGPT for logged-in adult users in the U.S., covering both free and paid subscription tiers, which is anticipated to support diversification of its revenue streams.
- Significant Revenue Growth: As of the end of last month, OpenAI's annualized revenue surpassed $25 billion, marking a 17% increase from $21.4 billion at the end of last year, demonstrating its strong performance and growth potential in the market.
- Future Revenue Projections: OpenAI projects total revenue will exceed $280 billion by 2030, with nearly equal contributions from consumer and enterprise segments, indicating its increasing competitiveness in the enterprise market.
See More
Trade Desk CEO's Major Stock Purchase Fuels After-Hours Rally
- Insider Stock Purchase: Trade Desk's CEO Jeffrey Terry Green acquired 6,398,089 Class A shares between March 2 and March 4, leading to a 9.25% increase in after-hours trading to $27.50, reflecting executive confidence in the company's future prospects.
- Transaction Price Analysis: The 6 million shares were purchased at weighted average prices ranging from $23.49 to $25.08, totaling approximately $148.1 million, indicating a strategic investment by the CEO near multi-year lows, which may attract market attention.
- Stock Awards and Options: Green also received a restricted stock award of 398,089 shares vesting over 16 quarters and stock options for 737,028 shares at an exercise price of $25, further solidifying his commitment to the company's long-term growth.
- Market Performance and Technical Indicators: With a market capitalization of $11.98 billion, Trade Desk's stock has fallen 62.77% over the past year, currently trading close to its 52-week low, yet the CEO's purchase may instill confidence among investors and improve market sentiment.
See More
TTD Shares Surge 9.3% Amid OpenAI Ad Partnership Talks
- Stock Rebound: TTD shares rose 9.3% in Wednesday's after-market session, providing relief for a company that has seen a 37% year-to-date decline, reflecting market optimism about its future collaborations.
- Market Capitalization Risk: With a current market cap of $12.2 billion, TTD is below the $22.7 billion threshold required to remain in the S&P 500, raising concerns among investors about potential removal from the index.
- Ad Revenue Projections: The potential partnership with OpenAI is expected to double ChatGPT's ad revenue to $17 billion in 2023, highlighting the strategic significance of this collaboration for TTD's future revenue growth.
- New Platform Launch: TTD unveiled the OpenTTD platform, designed to provide advertisers with centralized access to data solutions, further solidifying its position as an open and interoperable infrastructure layer in the digital advertising industry, driving long-term growth for the company.
See More
Investment Opportunities and Challenges in Tech Stocks
- Trade Desk Stock Decline: The Trade Desk's stock has plummeted over 80% since December 2024, dropping from $141 to $24.99, primarily due to economic uncertainty and data privacy regulations, although customer retention remains high at 95%.
- Sea Limited Growth Potential: Sea Limited's revenue grew by 35% to over $16 billion in the first nine months of 2025, despite a 45% drop in stock price from its highs, yet its low forward P/E ratio of 22 may attract investor interest.
- Lyft Financial Performance: Lyft reported a 15% increase in gross bookings in 2025, with revenue rising only 9%, but its free cash flow exceeded $1.1 billion, a 46% increase from 2024, and plans to allocate $1 billion for share buybacks.
- Market Overreaction: Despite intensified competition and market volatility, investors may find these tech stocks increasingly attractive as valuations improve, especially amid concerns over AI's impact on the industry, suggesting potential rebound opportunities.
See More
Low Valuations in Tech Stocks Present Investment Opportunities
- Trade Desk Valuation Drop: Since December 2024, The Trade Desk's stock has plummeted over 80% from above $141 per share to an all-time low, yet its customer retention remains above 95%, indicating resilience in the advertising sector despite challenges.
- Sea Limited Growth Potential: Sea Limited reported over $16 billion in revenue for the first nine months of 2025, a 35% increase, although its stock has dropped approximately 45% since September, its strong market position in Southeast Asia remains intact.
- Lyft Stock Volatility: Lyft's stock has lost about 45% since November 2022, despite a 15% increase in gross bookings for 2025 and free cash flow exceeding $1.1 billion, suggesting potential for future growth.
- Investor Sentiment Shift: Following the AI boom, investor confidence in tech stocks has waned; however, the low valuations of The Trade Desk and Sea Limited may present opportunities for investors to reassess and enter the market.
See More
Alphabet's Strong Earnings Contrast with Trade Desk's Disappointing Guidance
- Alphabet's Accelerating Performance: In its fourth quarter, Alphabet reported an 18% year-over-year revenue increase to $113.8 billion, accelerating from 16% growth in the previous quarter, showcasing strong performance in Google Services and cloud computing, thereby reinforcing its market leadership.
- Cloud Business Surge: Google Cloud's revenue soared 48% year-over-year to $17.7 billion in the fourth quarter, driven by the ongoing adoption of AI infrastructure, indicating Alphabet's rapid expansion in high-margin sectors.
- Trade Desk's Slowing Growth: The Trade Desk reported fourth-quarter revenue of $847 million, up 14% year-over-year, but noted that growth would have been closer to 19% without the irregular nature of U.S. political ad spending, highlighting a deceleration in its growth momentum.
- Uncertain Outlook: The Trade Desk's first-quarter revenue guidance of at least $678 million implies only about 10% year-over-year growth, and the adjusted EBITDA guidance suggests a decline in key profitability metrics, reflecting the challenges it faces.
See More
