The Trade Desk, Inc. TTD is reinforcing its growth momentum by deepening collaboration with advertisers through an expanded focus on Joint Business Plans (JBPs). As part of broader organizational upgrades, the company has restructured its go-to-market approach to better align with the needs of large global brands. This includes adopting a brand-first, more integrated coverage model where unified teams oversee both business development and spend activation, ensuring clearer accountability and improved execution.
A key outcome of this transformation is the increasing importance of JBPs in driving business performance. By the end of 2025, JBPs accounted for over half of Trade Desk’s business, with the pipeline for such partnerships more than doubling over the past year. These plans are designed to foster deeper collaboration between Trade Desk, advertisers and their agency partners. They establish shared objectives, define clear accountability and outline multiyear innovation roadmaps, enabling all stakeholders to work toward common growth targets.
This structured approach allows Trade Desk to operate with greater clarity and data-driven insights. With enhanced visibility into client needs and market opportunities, teams can identify growth areas earlier, allocate resources more effectively and adjust strategies when necessary. This model also provides resilience during periods of sector-specific weakness. For instance, while categories like consumer-packaged goods and automotive remain under macroeconomic pressures, the company can continue supporting these clients while simultaneously focusing on industries experiencing stronger growth.
In addition to improving client relationships, JBPs reinforce Trade Desk’s position as a strategic partner rather than just a platform provider. By deepening direct relationships with advertisers and eliminating overlapping coverage between advertiser and agency teams, the company has created a more streamlined and cohesive engagement model.
However, the company is grappling with vertical softness, margin stasis, competitive pricing, client spend volatility and near-term visibility constraints. Trade Desk faces stiff competition from other companies such as Magnite MGNI and PubMatic PUBM.
Taking a Look at MGNI & PUBM’s Growth Plans
Magnite’s is gaining from the accelerating shift toward streaming, with connected TV (CTV) becoming the majority of its business as adoption scales across media owners, agencies and advertisers. Growth is supported by strong demand for programmatic CTV, deeper integrations with leading publishers and OEMs, and increasing spend flowing through buyer marketplaces and DSP-agnostic pipes. Initiatives such as ClearLine are improving access to premium inventory, while commerce media partnerships are expanding with multiple partners deployed and ramping. The company is also advancing AI capabilities, including agent-based advertising and automation, to enhance efficiency. Additionally, expanding supply, diversified inventory and potential market share opportunities continue to support performance.
PubMatic is benefiting from strong growth in connected TV, mobile app and emerging revenue streams, with CTV growing more than 50% year over year and emerging revenues nearly doubling, driven by Activate, commerce media and new AI solutions. Growth is supported by increased adoption of AI-powered products, including agentic advertising, AgenticOS and AI Insights, which enhance efficiency and drive incremental revenue. The company is expanding through new DSP integrations, diversification of buyer mix and scaling mid-market demand. Strategic initiatives include strengthening go-to-market teams, deepening publisher and advertiser integrations, and investing in owned infrastructure and AI capabilities. Partnerships, product innovation and automation continue to improve performance and scalability.
TTD Price Performance, Valuation and Estimates
Shares of TTD have declined 58.9% in the past year, while the Zacks Internet – Services industry’s is up 95.9%.
Image Source: Zacks Investment Research
In terms of forward price/earnings, TTD’s shares are trading at 15.11X, lower than the Internet Services industry’s ratio of 25.97X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for TTD’s earnings for 2026 has been marginally revised downward over the past 60 days.
Image Source: Zacks Investment Research
TTD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Free Report: Profiting from the 2nd Wave of AI Explosion
The next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.
Investors who bought shares like Nvidia at the right time have had a shot at huge gains.
But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.
Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.
Access AI Boom 2.0 now, absolutely free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Trade Desk (TTD): Free Stock Analysis Report
Magnite, Inc. (MGNI): Free Stock Analysis Report
PubMatic, Inc. (PUBM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).