Trade Desk Stock Upgraded to Buy on Innovation-Driven Growth Prospects

The Trade Desk stock (NASDAQ: TTD) is gaining some bullish momentum this morning following an upgrade by Benchmark from Hold to Buy, signalling renewed confidence in the company's growth trajectory. The upgrade, accompanied by a price target of $65 for TTD, reflects optimism about the digital advertising platform's ability to overcome previous industry headwinds and capitalize on its innovative supply chain solutions.

The markets reacted positively to the news, with Trade Desk shares trading 6.49% higher in the pre-market. This positive sentiment follows a period of volatility for the stock, which has experienced a significant year-to-date decline of 61.01% leading into this morning's trade. The Benchmark upgrade suggests a potential turnaround, driven by the company's revenue acceleration, excluding political ad spend, which is now tracking at approximately 22% year-over-year growth.

The core of Benchmark's bullish outlook lies in The Trade Desk's forward-looking supply chain innovations. OpenPath, OpenAds, and Deal Desk are identified as critical differentiators that are expected to drive substantial AI efficiency gains. These innovations are seen as a countermeasure to commoditization concerns within the digital advertising space, positioning The Trade Desk for sustained competitive advantage.

This upgrade comes on the heels of a strong Q3 2025 financial performance. The Trade Desk reported revenue of $739 million, an 18% increase from the previous year, alongside net income of $116 million, up from $94 million. Moreover, adjusted EBITDA reached $317 million, representing an impressive 43% of revenue.

The company's financial strength is further underscored by an additional $500 million share repurchase authorization, signaling management's confidence in future prospects. The company's Q3 success was attributed to innovations within the Kokai platform, enhancing data-driven advertising capabilities, which further supports the upgrade sentiment.

Beyond financial results, The Trade Desk has been actively expanding its product offerings and forging strategic partnerships. The introduction of Audience Unlimited, an upgrade to its data marketplace, aims to improve targeting capabilities.

OpenAds, an open-source auction framework, seeks to enhance transparency for both buyers and publishers. Strategic expansions into specialized advertising sectors, such as the Pharma Ad Marketplace through integrations with IQVIA and Swoop, and collaborative partnerships with DIRECTV, OSN, and DAZN in the Connected TV space, are also expected to drive future growth and improve supply chain efficiencies.

Price Targets

Having been flirting with lows earlier in the week, this mornings move higher could provide some respite for bulls, who have had a difficult 2025 with TTD. With earnings coming in strong, and analysts' outlook improving, could this prove to be a turning point?