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The Future of Digital Advertising: Stocks to Keep an Eye On

A visual illustration showcasing the growth and potential of digital advertising in the coming years.

News Summary

The digital advertising industry is set to experience significant growth, projected to escalate from $410.70 billion in 2024 to $1.19 trillion by 2033. Key stocks to watch include Thryv Holdings, The Trade Desk, and HubSpot, each poised to capitalize on this evolving market with robust services and impressive revenue growth. Investors should consider the potential of these companies as they shape the future of digital marketing.

The Future of Digital Advertising: Stocks to Keep an Eye On

As we leap into a digital era, the global digital marketing industry is booming like never before. _Can you believe_ it’s projected to grow from a whopping $410.70 billion in 2024 to an astonishing $1.19 trillion by 2033? That’s a compound annual growth rate (CAGR) of 11.2%! With figures like these, it’s no wonder that savvy investors are turning their attention to particular stocks in the digital advertising space.

Top Players to Watch

Among the most promising stocks in this arena are _Thryv Holdings, Inc. (THRY)_, _The Trade Desk, Inc. (TTD)_, and _HubSpot, Inc. (HUBS)_. Each of these companies offers distinct services that are gearing up to capitalise on the evolving marketing landscape.

Thryv Holdings, Inc. (THRY) is on the rise, catering particularly to small-to-medium businesses. They provide a range of digital marketing solutions, along with cloud-based tools, covering everything from customer relationship management (CRM) to payment processing. On October 31, 2024, Thryv completed an impressive $80 million cash acquisition of Infusion Software, Inc. (Keap), which is set to enhance its software as a service (SaaS) offerings.

Recent Triumphs

In the fiscal third quarter ending September 30, 2024, THRY posted revenues of $179.85 million, with an adjusted gross profit of $116.84 million—a solid increase of 5.6% year-over-year. What’s more, the company’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) saw a remarkable jump of 167.7%, reaching $19.62 million for the same period. Analysts are quite optimistic, predicting that THRY’s EPS and revenue could soar by an astonishing 97.9% for Q4 2024, estimating revenues to hit around $183.02 million.

On to The Trade Desk

Moving over to The Trade Desk, Inc. (TTD), this company provides a robust cloud-based platform that simplifies the management of digital advertising campaigns. They have been hiking up in value lately; just look at their stock gain of 27.1% over the past six months and an impressive 65.3% over the last year, closing recently at $121.67.

For the third quarter of 2024, TTD posted a phenomenal revenue growth of 27.3%, reaching $628.02 million, with income from operations skyrocketing to $108.48 million, which is an eye-popping increase of 187.9% year-over-year. They’re anticipating a revenue leap of 25.3% for Q4 2024, projecting revenues could climb to $759.32 million with a remarkable EPS growth of 38.6% to $0.57.

HubSpot’s Rapid Growth

Finally, let’s not forget about HubSpot, Inc. (HUBS). Known for its comprehensive CRM platform, HubSpot supplies tools for marketing, sales, customer service, and operations, primarily targeting mid-market B2B companies. Recently, on October 30, 2024, they acquired Cacheflow, integrating it into their Commerce Hub offering to further broaden their services.

HubSpot reported remarkable numbers in Q3 2024, with revenues soaring 20.1% year-over-year to $669.72 million and a non-GAAP operating income of $125.21 million, a growth of 35.9%. Anticipating continued success, HubSpot expects a 15.8% year-over-year revenue increase for Q4, projecting it to reach $673.96 million.

Conclusion: A Bright Future Ahead

As we navigate this fast-paced digital realm, keeping an eye on these companies could be an astute move for investors looking for growth opportunities. Whether it’s Thryv’s comprehensive tools for smaller businesses, The Trade Desk’s cutting-edge advertising platform, or HubSpot’s CRM prowess, these players are helping to mold the future of digital marketing. So buckle up—there’s a lot to look forward to in the digital advertising landscape!