What happened
Shares of The Trade Desk (TTD 0.84%) finished June 32% higher, according to data from S&P Global Market Intelligence, as the ad-tech leader benefited from both a stock split and news that Google would delay its plan to block third-party cookies from its Chrome web browser.
As you can see from the chart below, most of the stock's gains came toward the end of the month as those news items came out.
TTD data by YCharts.
So what
The Trade Desk hummed along for the first half of the month and then got a 5.3% boost on June 17 when a 10-for-1 stock split went into effect. The company had announced the split back in May, and investors cheered as the price for a single Trade Desk share fell back into double digits after nearing $1,000 just months ago.
Image source: Getty Images.
Stock splits don't change the value of the stock (it's just like splitting a pie into more pieces), but investors often like the move as they see it as a signal from management that it expects the stock to keep going higher. It also makes individual shares cheaper, helping to attract retail investors, and acts as a milestone for the stock's growth.
Later in the month, The Trade Desk soared alongside other ad tech stocks after Google said it would delay its plan to block third-party cookies on its Chrome web browser. The stock jumped 16% that day as the announcement will give ad tech companies more time to adapt to a cookie-less environment. The Trade Desk has already begun doing that with its Unified ID 2.0 platform, so the company might not be as sensitive to the cookie policy as the 16% pop might make it seem.
CEO Jeff Green has downplayed the threat from the cookies ban in the past, saying in a March blog post that Unified ID 2.0 has already become an alternative to third-party cookies.
Now what
After a breakout 2020, The Trade Desk's shares are still down slightly year to date even after last month's gains. The stock has pulled back on broader pressure on growth stocks, but 2021 still looks promising. The connected TV market continues to boom, and the momentum toward digital advertising isn't going to disappear even as the pandemic is ending.
If you're looking for a growth stock with plenty of long-term potential, The Trade Desk looks like a great bet.
