What happened

Shares of The Trade Desk (TTD -1.80%) rocketed 41% over the past week, according to data provided by S&P Global Market Intelligence, as investors' optimism for the advertising technology company's growth potential reached a fevered pitch.

So what

Investors bid up The Trade Desk's stock price following its stellar second-quarter results released on Tuesday. The ad-buying platform saw its revenue jump 35% year over year to $377 million. That was on top of the pandemic-driven 101% growth it experienced during the second quarter of 2021. It was also above Wall Street's expectations for revenue of $364.9 million.

Marketers continue to flock to The Trade Desk's platform. Its Unified ID 2.0 (UID2) ad-targeting technology helps serve up highly relevant ads while preserving user privacy. UID2 is an upgrade to approaches that rely on third-party cookies -- at a time when privacy concerns are mounting across the world. Unsurprisingly, major corporations like Disney and Walmart have adopted The Trade Desk's tools.

"More of the world's leading brands are signing major new or expanded long-term agreements with The Trade Desk, which speaks to the innovation and value that our platform provides," CEO Jeff Green said in a press release.

Now what

The Trade Desk excels at helping companies advertise on the open internet, which consists of sites that lie outside the so-called "walled gardens" controlled by the likes of Alphabet's Google and Meta's Facebook. By providing tools that allow marketers to quantify the value of specific ad placements and adjust their campaigns in real-time based on data-driven insights, The Trade Desk is boosting their returns on investment.

While challenging economic conditions are driving businesses to do all they can to maximize the value of every dollar they spend on ads, The Trade Desk is becoming indispensable to its ad partners. That bodes well for the company's continued growth within the $750 billion global ad market and its ability to deliver further gains to its investors.