Over the past six months, The Trade Desk's (TTD -0.78%) stock is down considerably, but there are encouraging signs ahead. In this video clip from "3 Minute Stock Updates" on Motley Fool Live, recorded on July 6, Fool.com Brian Withers discusses some new streaming partnerships that should provide a big revenue boost.
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Brian Withers: The other thing that's happening in connected TV is more content providers than ever are moving to ad-supported content offerings, including Disney+, HBO Max, and Netflix. As a result, Jeff Green said that for most of the clients, TV spending is their largest segment of their campaign spend. This unique combination of video and audio time delivered when the audience is opting in with their emails is a great way to reach those consumers.
As consumers move en masse to streaming platforms, advertisers are following them. For consumers, on-demand content is just better. They added a number of new partnerships in 2021, including Peacock, Paramount+, Discovery+, and Sky. One of the concerns there is the G&A spend up 143%.
A lot of that has to do with an increase in stock-based compensation related to the CEO performance option granted in the fourth quarter of prior last year and a $7 million increase in payroll costs due to hiring to support the growth.
All in all, this is a great company leading in the ad tech space, and given that the stock is down considerably from its high, and even in the last 12 months, I think it's looking pretty good right here.
