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Summary
- Trade Desk provides a cloud-based self-service platform to advertisers who use its services to create, manage, and optimize their digital advertising.
- After the stock split, shareholders will receive nine additional shares for every one share held. As of March 2021, it had approximately 475 million shares.
- Despite the pandemic downturn, the digital domain, including online marketing, is expected to grow stronger.
The stock of Trade Desk, Inc. (NASDAQ:TTD) gained more than 10% after it carried out a 10-for-1 stock split. Its shares were trading at US$539.8 apiece, dropping marginally by 0.63% at 3.32 pm ET on Friday, May 22, from the previous close.
On the day of its announcement on May 10, the stock was priced at US$489.6 per share. The company had opted for the stock split to make its shares available to more investors.
A stock split does not make shareholders or the company richer, but the number of shares increases. The number of outstanding shares and their prices change as per the split ratio. And the market capitalization of the company remains unchanged.
The Ventura, California-headquartered technology company was initially named Delaware Corporation after its inception in 2009. It has offices in the US, Australia, Europe, and Asia.
Trade Desk provides a cloud-based self-service platform to advertisers who use its services to create, manage, and optimize their digital advertising across formats, like video, audio, and social media. Its services are provided on different devices like computers, cellphones, and TV.
Source: Pixabay.
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Since the launch of its ad platform in 2011, the company has drawn attention from various clients. The company’s primary source of revenue is its cloud-based platform, but it also earns a significant amount from data and other value-added services.
After the stock split, shareholders will receive nine additional shares for every one share held. As of March 2021, it had approximately 475 million shares.
Trade Desk’s cloud platform provides services like other tech companies in the domain. It does not offer any content but enables advertisers to use its platform to create ad campaigns.
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Pandemic Disruptions
The pandemic has disrupted businesses across all sections, although those in the digital domain may have suffered less. Despite the demand for goods and services during the pandemic, many companies struggled to fulfil them due to restrictions. Trade Desk’s clients involved in providing goods and services also have faced problems in keeping up with sales due to delivery constrictions. Despite the pandemic downturn, the digital domain, including online marketing, is expected to grow stronger, say analysts.
