We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Trade Desk vs. Magnite: Which Ad-Tech Stock is the Better Buy Now?
Read MoreHide Full Article
Key Takeaways
The Trade Desk grows with CTV, retail media, Kokai upgrade and expanding media partnerships.
Magnite boosts CTV growth via Roku, Netflix and FanDuel deals, plus streamr.ai acquisition.
MGNI shares climbed 13.2% in 3 months, while TTD shares fell 32.9% over the same period.
The Trade Desk, Inc. (TTD - Free Report) and Magnite, Inc. (MGNI - Free Report) are leading players in the digital advertising technology market. TTD operates a leading demand-side platform, which aids advertisers in focusing on data-driven advertising. Magnite is a supply-side platform (SSP) that helps publishers manage and sell their ad inventory across various formats, such as streaming, online video, display and audio.
According to a Grand View Research report, the global digital advertising market is expected to witness a CAGR of 15.4% from 2025 to 2030. The report further added that digital advertising will continue to be dominated by video as brands understand the effectiveness of visual storytelling. Digital advertising spend is expected to be driven by increasing mobile penetration, social media platforms, and programmatic advertising.
Since both firms have sizeable exposure to the booming connected TV (CTV) and retail media trends, this makes for an intriguing comparison for investors.
So, which stock makes a better investment pick at present? Let’s deep dive into the pros and cons of each company.
TTD: A Leading Name in the DSP Space
CTV, along with retail media, accounted for much of the company’s growth in the second quarter of 2025, supported by The Trade Desk’s decision-based programmatic approach. On the last earnings call, management highlighted that programmatic CTV continues to deliver the “most effective and highest return on ad spend,” strengthening TTD’s position in the CTV market. Expanding partnerships with major media players, such as Disney, NBCU, Netflix, Roku and Walmart, bode well. In the second quarter, Video, which includes connected CTV, accounted for a high-40s percentage of its overall business.
TTD is tightening its grip in the digital advertising space, with its latest platform upgrade, Kokai. More than 70% of clients are now using the company’s Kokai platform, with full client adoption expected to be completed by this year. The integration of Koa AI tools was highlighted by management as a “game changer” for the Kokai platform, as it can deliver significant gains in campaign precision, efficiency and outcomes. Management highlighted that advertisers transitioning the majority of spend to Kokai are increasing their overall spend on the platform more than 20% faster than those who have not.
OpenPath is simplifying the programmatic supply chain by allowing publishers to integrate directly with The Trade Desk’s platform. Sincera's acquisition enhances supply chain transparency through OpenSincera, which makes data available to the ecosystem for free. While North America accounted for 86% of advertising spend, TTD is steadily expanding its global footprint, driven by faster-growing international markets. Given the multiple vectors, TTD expects revenues of at least $717 million, indicating 14% year-over-year growth for the third quarter. Adjusted EBITDA is expected to be around $277 million.
TTD is highly sensitive to macroeconomic conditions as well as stiff competition in the ad tech space from the likes of industry giants like Alphabet and Amazon, as well as other smaller players. Macroeconomic uncertainty is likely to weigh on advertising budgets. TTD remains cautious regarding the impact of the volatile macro backdrop, particularly on the large global brands. If macro headwinds worsen or persist into the remainder of 2025, revenue growth may face further pressure due to reduced programmatic demand.
Higher expenses are likely to weigh on profitability. In the last reported quarter, total operating costs surged 17.8% year over year to $577.3 million. Expenses soared on account of continued investments in boosting platform capabilities, particularly platform operations. Higher costs can prove a drag on margins, especially if revenue growth does not keep pace. Overreliance on North America for revenues is another concern. Though TTD is focusing on geographic expansion, executing well across disparate markets can be complex and risky.
MGNI: A Leading Name in SSP Space
Magnite is gaining from robust growth in CTV, with contributions excluding Traffic Acquisition Costs (ex-TAC) from CTV increasing 14% year over year for the second quarter of 2025 and represented 44% of the contribution mix. The company is strengthening its CTV business through partnerships with Roku, Paramount, Netflix, LG and Warner Bros. On the last earnings call, management noted that its CTV business was gaining from positive small and medium-sized businesses ("SMB") adoption trends and agency marketplaces, along with programmatic growth in live sports. It recently acquired streamr.ai, which offers AI tools to make CTV advertising easily accessible to SMBs.
While MGNI stressed that the opportunity in live sports is still in the early stages, programmatic is rising as an “effective go-to-market tool to sell” inventory with every passing sports season. The company remains confident that “most of the leading players” will choose its platform due to the tech and investment focus. It highlighted the deal with FanDuel Sports Network as an instance of a partner who has selected Magnite and already has a huge operating scale. FanDuel Sports Network produces more than 3,000 live sporting events annually in local markets.
MGNI moved its combined CTV platform (which includes streaming and ad serving) to general availability under the SpringServe brand. Management added that this unified platform offers a competitive advantage and internal efficiency gains for MGNI, supporting both share capture and margin expansion.
Additionally, MGNI’s DV+ (display, video, and mobile) business is witnessing momentum, with contribution ex-TAC up 8% from the last reported quarter, underpinned by new product functionality and early contributions from recent partners. MGNI expects an antitrust ruling against Google in the DOJ case to overhaul the open Internet landscape and boost its DV+ business. MGNI estimates Google’s Exchange controls ~60% DV+ share, while Magnite is mid-single digits. Management estimates that each 1% share shift could equal $50 million of incremental contribution ex-TAC annually.
New generative AI-powered tools are expected to drive operational efficiencies and enable new monetization opportunities. On the DSP side, Magnite is one of three platforms approved for Amazon DSP spend and is monetizing Amazon Fire device inventory. MGNI stressed that this was a strong indicator of its role in generating demand in the CTV ecosystem.
Share Performance for TTD & MGNI
Over the past three months, MGNI has gained 13.2% while TTD has declined a staggering 32.9%.
Image Source: Zacks Investment Research
Valuation for TTD & MGNI
Valuation-wise, both are overvalued, as suggested by the Value Score of D, while MGNI has a Value Score of C, respectively.
Image Source: Zacks Investment Research
In terms of the forward 12-month price/earnings ratio, TTD shares are trading at 23.11X, higher than MGNI’s 21.99X.
How Do Zacks Estimates Compare for TTD & MGNI?
Analysts have made marginal downward revisions for TTD’s bottom line for the current year in the past 60 days.
Image Source: Zacks Investment Research
For MGNI, there is an upward revision of 7.32% for the current fiscal year.
Image Source: Zacks Investment Research
TTD or MGNI: Which is a Smarter Bet?
While MGNI carries a Zacks Rank #2 (Buy), TTD currently carries a Zacks Rank #3 (Hold).
Image: Bigstock
The Trade Desk vs. Magnite: Which Ad-Tech Stock is the Better Buy Now?
Key Takeaways
The Trade Desk, Inc. (TTD - Free Report) and Magnite, Inc. (MGNI - Free Report) are leading players in the digital advertising technology market. TTD operates a leading demand-side platform, which aids advertisers in focusing on data-driven advertising. Magnite is a supply-side platform (SSP) that helps publishers manage and sell their ad inventory across various formats, such as streaming, online video, display and audio.
According to a Grand View Research report, the global digital advertising market is expected to witness a CAGR of 15.4% from 2025 to 2030. The report further added that digital advertising will continue to be dominated by video as brands understand the effectiveness of visual storytelling. Digital advertising spend is expected to be driven by increasing mobile penetration, social media platforms, and programmatic advertising.
Since both firms have sizeable exposure to the booming connected TV (CTV) and retail media trends, this makes for an intriguing comparison for investors.
So, which stock makes a better investment pick at present? Let’s deep dive into the pros and cons of each company.
TTD: A Leading Name in the DSP Space
CTV, along with retail media, accounted for much of the company’s growth in the second quarter of 2025, supported by The Trade Desk’s decision-based programmatic approach. On the last earnings call, management highlighted that programmatic CTV continues to deliver the “most effective and highest return on ad spend,” strengthening TTD’s position in the CTV market. Expanding partnerships with major media players, such as Disney, NBCU, Netflix, Roku and Walmart, bode well. In the second quarter, Video, which includes connected CTV, accounted for a high-40s percentage of its overall business.
TTD is tightening its grip in the digital advertising space, with its latest platform upgrade, Kokai. More than 70% of clients are now using the company’s Kokai platform, with full client adoption expected to be completed by this year. The integration of Koa AI tools was highlighted by management as a “game changer” for the Kokai platform, as it can deliver significant gains in campaign precision, efficiency and outcomes. Management highlighted that advertisers transitioning the majority of spend to Kokai are increasing their overall spend on the platform more than 20% faster than those who have not.
OpenPath is simplifying the programmatic supply chain by allowing publishers to integrate directly with The Trade Desk’s platform. Sincera's acquisition enhances supply chain transparency through OpenSincera, which makes data available to the ecosystem for free. While North America accounted for 86% of advertising spend, TTD is steadily expanding its global footprint, driven by faster-growing international markets. Given the multiple vectors, TTD expects revenues of at least $717 million, indicating 14% year-over-year growth for the third quarter. Adjusted EBITDA is expected to be around $277 million.
TTD is highly sensitive to macroeconomic conditions as well as stiff competition in the ad tech space from the likes of industry giants like Alphabet and Amazon, as well as other smaller players. Macroeconomic uncertainty is likely to weigh on advertising budgets. TTD remains cautious regarding the impact of the volatile macro backdrop, particularly on the large global brands. If macro headwinds worsen or persist into the remainder of 2025, revenue growth may face further pressure due to reduced programmatic demand.
Higher expenses are likely to weigh on profitability. In the last reported quarter, total operating costs surged 17.8% year over year to $577.3 million. Expenses soared on account of continued investments in boosting platform capabilities, particularly platform operations. Higher costs can prove a drag on margins, especially if revenue growth does not keep pace. Overreliance on North America for revenues is another concern. Though TTD is focusing on geographic expansion, executing well across disparate markets can be complex and risky.
MGNI: A Leading Name in SSP Space
Magnite is gaining from robust growth in CTV, with contributions excluding Traffic Acquisition Costs (ex-TAC) from CTV increasing 14% year over year for the second quarter of 2025 and represented 44% of the contribution mix. The company is strengthening its CTV business through partnerships with Roku, Paramount, Netflix, LG and Warner Bros. On the last earnings call, management noted that its CTV business was gaining from positive small and medium-sized businesses ("SMB") adoption trends and agency marketplaces, along with programmatic growth in live sports. It recently acquired streamr.ai, which offers AI tools to make CTV advertising easily accessible to SMBs.
While MGNI stressed that the opportunity in live sports is still in the early stages, programmatic is rising as an “effective go-to-market tool to sell” inventory with every passing sports season. The company remains confident that “most of the leading players” will choose its platform due to the tech and investment focus. It highlighted the deal with FanDuel Sports Network as an instance of a partner who has selected Magnite and already has a huge operating scale. FanDuel Sports Network produces more than 3,000 live sporting events annually in local markets.
MGNI moved its combined CTV platform (which includes streaming and ad serving) to general availability under the SpringServe brand. Management added that this unified platform offers a competitive advantage and internal efficiency gains for MGNI, supporting both share capture and margin expansion.
Additionally, MGNI’s DV+ (display, video, and mobile) business is witnessing momentum, with contribution ex-TAC up 8% from the last reported quarter, underpinned by new product functionality and early contributions from recent partners. MGNI expects an antitrust ruling against Google in the DOJ case to overhaul the open Internet landscape and boost its DV+ business. MGNI estimates Google’s Exchange controls ~60% DV+ share, while Magnite is mid-single digits. Management estimates that each 1% share shift could equal $50 million of incremental contribution ex-TAC annually.
New generative AI-powered tools are expected to drive operational efficiencies and enable new monetization opportunities. On the DSP side, Magnite is one of three platforms approved for Amazon DSP spend and is monetizing Amazon Fire device inventory. MGNI stressed that this was a strong indicator of its role in generating demand in the CTV ecosystem.
Share Performance for TTD & MGNI
Over the past three months, MGNI has gained 13.2% while TTD has declined a staggering 32.9%.
Image Source: Zacks Investment Research
Valuation for TTD & MGNI
Valuation-wise, both are overvalued, as suggested by the Value Score of D, while MGNI has a Value Score of C, respectively.
Image Source: Zacks Investment Research
In terms of the forward 12-month price/earnings ratio, TTD shares are trading at 23.11X, higher than MGNI’s 21.99X.
How Do Zacks Estimates Compare for TTD & MGNI?
Analysts have made marginal downward revisions for TTD’s bottom line for the current year in the past 60 days.
Image Source: Zacks Investment Research
For MGNI, there is an upward revision of 7.32% for the current fiscal year.
Image Source: Zacks Investment Research
TTD or MGNI: Which is a Smarter Bet?
While MGNI carries a Zacks Rank #2 (Buy), TTD currently carries a Zacks Rank #3 (Hold).
In terms of Zacks Rank, MGNI stands out as the stronger pick for investors. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.