• Wedbush sets a modest price target of $40 for NASDAQ:TTD, indicating cautious optimism amidst competition and structural challenges.
• TTD's growth is driven by the shift of advertisers to connected TV and digital platforms, despite facing disadvantages against closed-loop platforms like Amazon and Google.
• The company's reliance on the open internet for ad buying presents a structural challenge in competing with platforms that offer a more controlled environment.

The Trade Desk Inc. (NASDAQ:TTD) is a prominent player in the digital advertising industry, providing a platform for advertisers to purchase digital ad space. The company operates on the open internet, offering a content-agnostic strategy that allows advertisers to reach audiences across various media channels. However, it faces stiff competition from major platforms like Amazon, Meta, and Google, which offer closed-loop, AI-optimized buying experiences.

On December 8, 2025, Wedbush set a price target of $40 for TTD, slightly above its trading price of $39.49 at the time. This target suggests a modest 1.29% increase, reflecting cautious optimism amid the company's challenges. Wedbush's adjustment from a previous target of $50 highlights the growing structural challenges TTD faces in an AI-dominated advertising landscape.

Despite these challenges, Wedbush analysts expect TTD to continue experiencing topline growth. This growth is anticipated to be driven by the shift of linear advertisers to connected TV (CTV) and digital platforms. TTD's strategy of enhanced integration across media channels supports this transition, offering advertisers a broad reach.

However, TTD's reliance on the open internet presents a structural disadvantage. Competitors like Amazon and Google provide advertisers with a more controlled environment, leveraging identity and purchase data for a seamless buying experience. TTD's open internet approach results in fragmented identity and probabilistic measurement, making it harder to compete.

Currently, TTD is trading at $39.61, reflecting a 1.10% decrease with a price change of $0.44. The stock has seen a low of $39.39 and a high of $40.29 today. Over the past year, TTD's stock has fluctuated significantly, with a high of $137.19 and a low of $38.23. The company's market capitalization is approximately $19.48 billion, with a trading volume of 5,779,735 shares.