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Snowflake Partners With The Trade Desk -- Could Snowflake Create a Big Data Digital Advertising Moat?

By Eric Cuka – Aug 11, 2021 at 10:00AM

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Digital advertising, streaming, and connected TV (CTV) are massive secular growth trends. Could Snowflake, and your portfolio, benefit?

In mid-July Snowflake (SNOW -1.18%) announced support for Unified ID 2.0 (UID2), originally developed by The Trade Desk (TTD -0.30%). If you aren't familiar with this topic, Alphabet's Google (GOOGL -1.02%) (GOOG -1.24%) plans to eliminate third-party cookies, and Unified ID 2.0 is a potential way to replace the dated technology. In a nutshell, UID2 is an open-source tool that enables advertisers, publishers, and partners to identify users without the need for third-party cookies. 

At first, I did not think much of Snowflake's announcement to support UID2. However, I recently listened to The Trade Desk's earnings call. On the call, Jeff Green, The Trade Desk's CEO and co-founder, was asked a very interesting question by an analyst: "Jeff, could you expand on the Snowflake UID integration?" My ears perked up. I knew that The Trade Desk is a customer of Snowflake, but I did not put everything together until I heard his response. I read his full response in the video below, but essentially Jeff Green discussed how important this development is for digital advertising. Jeff replied, "I think Snowflake adopting UID2 is one of the biggest headlines that has happened for UID to date, and not enough has been said about it." He continued to explain further, and the more he talked, the more I realized the power of this opportunity. 

I then decided to explore further. I went through Snowflake's website, and I scrubbed the internet for every drop of information I could uncover. In the below video, I share my findings with you. I own shares of both companies, and this opportunity could be massive. Please watch the video for more details. 

*Stock prices used in the below video were during the trading day of August 10, 2021. The video was published on August 10, 2021.

Eric Cuka owns shares of Snowflake Inc. and The Trade Desk. The Motley Fool owns shares of and recommends Snowflake Inc. and The Trade Desk. The Motley Fool has a disclosure policyEric is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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Stocks Mentioned

The Trade Desk Stock Quote
The Trade Desk
TTD
$49.39 (-0.30%) $0.15
Snowflake Inc. Stock Quote
Snowflake Inc.
SNOW
$144.72 (-1.18%) $-1.73
Alphabet (A shares) Stock Quote
Alphabet (A shares)
GOOGL
$97.46 (-1.02%) $-1.00
Alphabet (C shares) Stock Quote
Alphabet (C shares)
GOOG
$97.60 (-1.24%) $-1.22

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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