Actions of The commercial counter (NASDAQ: TTD) struggled this week. The digital advertising stock fell 10.1% this week, although stocks ended down around 7.9% in the past seven days, with no apparent reason for the slowdown.
There’s no company-specific news behind this week’s drop, at least not that we could find. Rather, it appears that the general market malaise heading into the fall months could be a contributing factor. The broader market was also down over the past week, with the S&P 500 slipping 2.2% this week from the previous Friday’s close.
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Investors are also probably still digesting the plans to Alphabet‘s (NASDAQ: GOOGL) (NASDAQ: GOOG), Google to end support for ad tracking cookies on its Chrome browser. Cookies are small pieces of computer code that track specific users on the Internet and are widely used to serve targeted advertisements.
The company originally planned to delete cookies earlier this year, but recently pushed back its deadline and now plans to phase them out by the end of 2023.
According to the comments of the management of The Trade Desk, the disappearance of cookies is a lot of ado about nothing. CEO Jeff Green addressed the issue earlier this year, after âmaking dozens of callsâ about what the move means for the future of the Trade Desk, but his response is revealing. âThe short answer? Not much has changed,â Green said in a blog post. “But what has changed will ultimately turn out to be positive.”
“Cookies only have an impact on the navigation Internet, “he added (emphasis mine).” This represents about 20% of data-driven advertising today. “
âCookies don’t really matter much to the fastest growing areas of the digital advertising ecosystem, such as CTV,â or connected television, Green said. When viewers log into the CTV platforms, they not only get personalized viewing recommendations, but also more meaningful ad targeting, which doesn’t rely on cookies.
This point shows that The Trade Desk still has a long way to go for growth.
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Suzanne Frey, an executive at Alphabet, is a member of the board of directors of The Motley Fool. Danny Vena owns shares of Alphabet (A shares) and The Trade Desk. The Motley Fool owns shares and recommends Alphabet (A shares), Alphabet (C shares) and The Trade Desk. The Motley Fool has a disclosure policy.
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