The article emphasizes the value of long-term investing in the stock market using The Trade Desk as a case study. Despite its astonishing growth of over 2,300% since its IPO in 2016, the company’s stock has recently dropped more than 40% from its peak value. The article highlights the ongoing shift in advertising from traditional media to digital platforms and how companies like The Trade Desk leverage this trend to compete against major players like Google and Facebook, which dominate the market through their 'walled gardens'.
Stock prices can do irrational things from day to day, or even for a few years. But if you look at more extended periods, you'll see that the market is pretty good at sniffing out winning and losing companies.
Advertising dollars are steadily shifting from newspapers, magazines, and broadcast television to the internet, where your online footprint generates data that companies can use to target you with ads.
The Trade Desk has thrived in the digital advertising market, which encompasses connected TV, online video, websites, smartphone apps, mobile web browsers, and internet audio.
Despite its long-term performance, The Trade Desk is down over 40% from its high. Is the stock still a long-term winner?
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