investor Trade station (NASDAQ: TTD) When they saw red on Thursday, they were envious when the stocks fell.
As Trading Taiwan stocks fall by more than 30%, Adtech Titan application (NASDAQ: Application) Soaring in its earnings report, its fourth-quarter results rose by more than 20% again as it beats the estimates again.
This is obviously a disappointing event for the trading table shareholders, seeing Applevin's stock Soar only adds an insult to injury as Applovin has surpassed the trading table to become the largest ADTECH company by market cap.
The fourth quarter was a rare mistake on the trade table. Revenue rose 22% to $741 million, well below consensus at $759.6 million, and also missed management's own guidance.
Trade Station CEO Jeff Green talks directly about the disappointing results. "I want to admit in advance that this is the 33rd quarter of a public company and we don't have our own expectations," he said on the revenue call. Green said he didn't care about the lack of Wall Street estimates, but he thinks it's lack of company Guidance is trust in investors.
In the third quarter, management called for at least $756 million in revenue in the fourth quarter and adjusted $363 million in interest, tax, depreciation and amortization (EBITDA).
Trade Taiwan also missed the target with an adjusted EBITDA of $350 million. Its adjusted earnings per share increased from $0.41 to $0.59, which puts the Wall Street consensus limit at $0.57.
The company missed the estimate for a number of reasons. In general, poor execution, weak customer demand, a headwind of the macro economy or a competitive shift are some of the biggest factors in revenue shortages.
Green blamed weak executions entirely for disappointing results, adding: "This did not happen because the opportunity was not as great as we thought. In this case, it wasn't because of our competition." Instead What he cites is that he cited a series of “a series of small execution mistakes while preparing for the future.”
Among these missteps, Kokai is its new customer platform for artificial intelligence (AI), which is launching slower than expected, although management hopes to upgrade 100% of its customers from Solimar to Kokai this year. It also underwent its biggest restructuring ever in December, which could slow down the business. Finally, it made some intentional decisions, focusing on long-term opportunities rather than short-term income.
Green did not discuss any competitive threats on the phone, and the Trading Station and other DSPs usually don't take into account the company's calculus as it tends to focus on like letter'S Google, Meta Platform,,,,, Amazonand appleHe believes this is a walled garden that he believes will eventually open to platforms such as trade tables.
Trading Taiwan has long been the largest independent DSP on the market, but Appleovin has now won the championship. Appleovin reported that advertising revenue grew 75% to $3.22 billion in 2024, up 26% before the Trade Taiwan revenue of $2.44 billion.
Appleovin and The Trade Desk are not close to competitors. Applovin has historically focused on mobile gaming applications and helps developers monetize applications. On the other hand, the Trade Station implements and optimizes advertising campaigns across multiple channels for large brands and agents.
However, as Applovin grows, it focuses on new markets to drive its expansion. It has expanded to direct consumer (DTC) brands and aims to add more businesses in the digital economy this year. In 2025, it plans to launch a self-service AI dashboard similar to the trade tables that offer, and aims to “explorate” the ads for connected TV (CTV) this year. This is important because videos, including CTV, now account for nearly 50% of the Trade Station business, and the company sees CTV as a major growth opportunity.
The next biggest market for Trade Station is Mobile-Applevin’s base – accounting for 30% of advertising spending on the Trade Station platform.
If Green is right, his company’s shortage may be attributed to its mistakes, rather than external factors like Applevin’s competition, but Appleovin’s 2025 plan and blowout growth suggest that these two ADTECH platforms are colliding in courses .
Businesses often use multiple DSPs, so both companies can grow by capturing market share elsewhere and benefiting from growing pie. But in the end, despite the huge advertising market, they are fighting for the same pie.
Given its excellent trail and Green's pound reputation, the company lacks guidance to reasoning worthy of surface value, and a quarter of the results do not have enough evidence to conclude that the fundamental change of the trade table.
The company should have at least another quarter to get things right, but another lady coach will crush the stock and show that it may be competition that is weakening the company's growth rather than internal mistakes.
Also pay attention to the customer retention number of the Trade Station. The company has reported more than 95% of customer retention rates per quarter over the past 11 years. If it is to be changed, it will be a big red flag.
Currently, I plan to hold shares in the trading table and I think there is a good opportunity, especially based on adjusted earnings per share, trading at a price of 50 at the stock, and trading at a price of only 50 at the stock. Remember, 22% is still an excellent revenue growth rate. The Trade Desk has just been punished because it missed guidance. Guidance misses often signal the market that the stock has been overvalued and expectations need to be reset based on management's updated revenue and guidance.
But with Appleovin's surge, there are risks now, and the competitive landscape may be more complex than green acknowledges, and investors should not ignore this. We should get a clear answer sometime this year.
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John Mackey, former CEO of Amazon's subsidiary Whole Foods Market, is a member of the board of directors of Motley Fool. Randi Zuckerberg is a sister of former marketing development director, Facebook spokesperson, and Meta Platform CEO Mark Zuckerberg, and a member of the Motley Fools’ board of directors. Alphabet executive Suzanne Frey is a member of the Motley Fool board of directors. Jeremy Bowman has positions on Amazon, metaplatform and trading tables. Motley fool has a place and recommends letters, Amazon, Apple, Apple, Meta Platform and Trade Station. Motley Fool has a disclosure policy.
Trade Taiwan stocks fell. Is Applovin the culprit? Originally published by Motley Fool