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The Exciting Future of Digital Advertising Stocks: What to Watch in 2025

The future of digital advertising stocks in a vibrant digital landscape.

News Summary

As the digital marketing industry continues to grow rapidly, investments in digital advertising stocks present a unique opportunity for savvy investors. Companies like Thryv Holdings, The Trade Desk, and HubSpot are leading this charge, posting impressive growth rates and making strategic acquisitions to enhance their market positions. With the global market expected to reach $1.19 trillion by 2033, potential investors should keep an eye on these key players and their promising futures.

The Exciting Future of Digital Advertising Stocks: What to Watch in 2025

The digital marketing industry is evolving faster than a viral meme! With the global market size expected to surge from $410.70 billion in 2024 to a whopping $1.19 trillion by 2033, that’s a remarkable compound annual growth rate (CAGR) of 11.2%. As businesses continue to embrace the digital sphere, savvy investors are turning their eyes toward promising digital advertising stocks. Let’s dive into some notable companies that are steering the ship into this bright future.

Thryv Holdings, Inc. (THRY) Making Waves

First up on our radar is Thryv Holdings, Inc. (THRY), which has been making headlines for all the right reasons. This company specializes in offering digital marketing solutions tailored for small to medium-sized businesses. Their offerings include cloud-based tools for customer relationship management (CRM), search engine optimization (SEO), digital advertising, appointment scheduling, and even payment processing.

Just recently, on October 31, 2024, THRY completed an impressive $80 million acquisition of Infusion Software, Inc. (also known as Keap). This strategic move enhances their software-as-a-service (SaaS) solutions, placing them in a great position for growth. In Q3 2024, THRY reported a revenue of $179.85 million and adjusted gross profit of $116.84 million, reflecting a solid 5.6% increase year-over-year. They also saw their adjusted EBITDA soar to $19.62 million, showing staggering growth of 167.7% compared to the previous year.

Looking ahead, analysts are optimistic about THRY’s performance for Q4 2024, predicting a 97.9% increase in earnings per share (EPS) and a revenue of $183.02 million. With a POWR Ratings grade of B in both Growth and Value, THRY is making a name for itself within the software – business industry.

The Trade Desk, Inc. (TTD) Thriving

Next, we have The Trade Desk, Inc. (TTD), which is an absolute powerhouse in digital advertising. This company provides a cloud-based platform that allows businesses to manage their digital advertising campaigns effectively. TTD has been focusing on improving campaign performance, and it’s paying off!

On November 14, 2024, TTD’s shareholders voted in favor of the company’s reincorporation from Delaware to Nevada, positioning it for further growth. In Q3 2024, TTD reported a remarkable 27.3% growth in revenue to $628.02 million, with a striking 187.9% increase in income from operations. Talk about impressive numbers!

For Q4 2024, expectations are high, with projected revenue growth of 25.3% to $759.32 million and EPS growth of 38.6% to $0.57. TTD has also experienced a notable stock gain of 27.1% over the past six months and a staggering 65.3% over the past year, closing at $121.67. It holds an A grade in Growth and a B in Quality in its POWR Ratings, showcasing its strong performance in the software – application sector.

HubSpot, Inc. (HUBS) Gains Momentum

Last but definitely not least is HubSpot, Inc. (HUBS). Renowned for its powerful cloud-based CRM platform, HubSpot provides an excellent array of tools for marketing, sales, customer service, and operations, especially focused on mid-market businesses. On October 30, 2024, HUBS acquired Cacheflow, incorporating it into their already impressive Commerce Hub offering.

In its latest financial results for Q3 2024, HUBS reported a revenue increase of 20.1% year-over-year to $669.72 million, with a robust non-GAAP operating income of $125.21 million, which is up 35.9%. And the projections for Q4 2024 look promising, anticipating revenue of $673.96 million and an EPS growth of 24.8% to $2.20.

HUBS’ stock has been on a steady rise, gaining 24.6% in the past six months and 22.3% in the last year, ending at $714.96. It proudly holds an A grade in Growth and a B in Sentiment in its POWR Ratings, ranking well within the software – business sector.

The Road Ahead

As we gaze into the exciting future of digital advertising stocks, Thryv Holdings, The Trade Desk, and HubSpot position themselves as leaders in this rapidly growing industry. With the digital marketing landscape evolving, these companies are definitely worthy of a spot on your watchlist!