What happened

Shares of ad-buying specialist The Trade Desk (TTD 1.61%) jumped on Tuesday, rising more than 11% as of 3:20 p.m. EST.

The stock's gain follows a bullish take on the stock from Mad Money's Jim Cramer Wednesday evening on CNBC. Cramer said The Trade Desk is a compelling way for investors to play cord-cutting trends.

A chart showing a stock price moving higher

Image source: Getty Images.

So what

"Maybe The Trade Desk is the Switzerland of streaming," Cramer said on Mad Money. "The neutral third party that can work with everybody."

Comparing The Trade Desk to Roku (ROKU -2.67%), Cramer said The Trade Desk is less well known, yet benefits from better financials and a more compelling story.

While ad spend on The Trade Desk's platform for connected-TV ads may only represent one of the company's various channels, it is soaring -- up 145% year over year in the third quarter of 2019. Further, the company expects adjusted EBITDA in 2019 to be about $209 million. Roku's guidance for adjusted EBITDA is between $28 million and $33 million.

Cramer went on to encourage investors to buy the stock on a sell-off.

Now what

The stock is hitting new highs going into the company's earnings report, with shares trading above $300. This puts pressure on The Trade Desk going into its financial update.

The Trade Desk is scheduled to report its fourth-quarter results after market close on Thursday, Feb. 27.