What happened

Shares of The Trade Desk (NASDAQ:TTD) climbed 31.1% in November, according to data from S&P Global Market Intelligence, as the market digested both the programmatic advertising specialist's latest quarterly results and the implications of the successful launch of Walt Disney's Disney+ streaming service.

On the former, The Trade Desk stock climbed modestly on the heels of its stronger-than-expected third-quarter report, which was released on Nov. 7. The Trade Desk's revenue climbed an impressive 38% year over year to $164.2 million, translating to adjusted earnings of $0.75 per share. Both figures arrived well above analysts' consensus estimates, which called for lower earnings of $0.67 per share on revenue closer to $163.8 million.

Stock market data with arrow charts indicating gains.


So what

The Trade Desk founder and CEO Jeff Green called it an "outstanding performance," noting that the company's strong top-line growth significantly outpaced that of the broader worldwide programmatic advertising market.

"The world's leading brands and agencies are increasingly using our platform to apply data-driven strategies to drive precision and value across their campaigns," Green added.

Incidentally, The Trade Desk's gains accelerated the following week, starting with a nearly 11% single-day pop on Nov. 11, which was the day before Disney formally launched its now wildly successful Disney+ streaming video service. Disney also offers a bundled package for $12.99 that includes Disney+, ESPN+, and its ad-supported version of Hulu -- any momentum created for the last of which could help bolster The Trade Desk's fortunes as demand for programmatic advertising increases.

Now what

To be fair, The Trade Desk stock did give up some of its gains at the start of December, albeit largely as a casualty of a broader pullback in high-flying tech names. But as long as The Trade Desk can continue grabbing an outsized piece of its budding niche, I suspect the stock will remain a top pick for growth-hungry investors and ultimately revert to its market-beating ways.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.