Business & Investment

Two digital advertising stocks you need to buy now!

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Investors looking for stocks that can outperform the market need to constantly identify the companies that are part of the rapidly expanding market. As the world becomes digital, companies seek to acquire customers through online ad creators such as: Trade desk (NASDAQ: TTD) When Acuity Ads (TSX: AT)(NASDAQ: ATY) Top bet now. Let’s see why these two stocks are part of our growth portfolio.

Trade desk

The Trade Desk, a company launched in 2016, has already returned an astonishing 2,200% to investors. So if you invest $ 1,000 right after the Trade Desk initial public offering (IPO), your investment today would be over $ 22,000. However, TTD stocks have also fallen 29% from record highs, allowing investors to buy this decline.

The Trade Desk is the world’s largest independent demand-side platform or DSP. The DSP platform allows advertising agencies and marketers to bid on inventory. Over the last seven years, The Trade Desk has a retention rate of over 95%, demonstrating high customer engagement.

The company is optimistic about the growth of connected TVs or CTV verticals to lead the top line over the next decade and reduce exposure to mobile and desktop advertising. Despite lower corporate advertising spending in 2020, TTD increased sales by 26% year-over-year. Sales growth is projected to accelerate to 67% in the first half of 2021 and increase by 40% in 2021. Wall Street also forecasts 2022 to grow 29% year-on-year to $ 1.51 billion.

TTD stocks are trading at high prices, with a forward price of 22 times by 2022 and a high price-earnings ratio of 83 times. However, between 2022 and 2025, TTD is expected to increase revenue at an annual rate of 54%.

Acuity Ads

Acuity Ads’ share rose tremendously by 975% in 2020 and is now down 75% from a record high. Acuity Ads, a much smaller player than the TTD, is now Valued by market capitalization $ 485 million.

AcuityAds provides solutions for marketers in programmatic advertising space. The Canadian company benefited from increased screen time and online entertainment solutions in a pandemic that pushed stocks to record highs in early 2021.

It’s new Self-service platform called illumin was also launched in October last year and is expected to be a major driver of future revenue growth. Illuminations revenue for the fourth quarter of 2020 was $ 1.5 million, and in the first six months of 2021, revenue from this platform increased to $ 8.43 million.

illumin is an ad automation technology that allows advertisers to plan, buy, optimize, and report on ad programs through a single-user interface, making it easy to map customer movement across devices and multiple communication channels. I can do it.

Acuity Ads revenue is projected to grow 50% year-on-year to $ 30.2 million in the second quarter and reach $ 132.46 million in 2021. Bay Street also forecasts an increase of 23% to $ 163 million in 2022.

AcuityAds is trading at an attractive price with a price-earnings ratio of more than 3 times, but the price-earnings ratio is also reasonable at 28.Analyst Inventory tracking We expect the market value of stocks to nearly triple in the next 12 months.

Two digital advertising stocks you need to buy now! Two digital advertising stocks you need to buy now!

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