December 31, 2024

Digital Advertising Stocks Shining Bright: A Look Ahead to 2025

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Real Internet Sales

Real Internet Sales is a digital marketing agency located in Columbia, South Carolina. We specialize in website design and development, SEO, social media management, online advertising, AI integration, and workflow automation. Our services also include affiliate marketing and digital strategy.

Real Internet Sales also offer specialized programming for real estate firms, using IDX and RETS feeds to automatically populate MLS properties on their websites for improved property listings and sales. We also work with clients in the restaurant, tourism, and e-commerce industries to enhance their digital presence and streamline operations.

News Summary

The digital marketing industry is projected to grow significantly from $410.70 billion in 2024 to $1.19 trillion by 2033, with an annual growth rate of around 11.2%. Key players such as Thryv Holdings, The Trade Desk, and HubSpot are making notable advancements, positioning themselves for future success in this lucrative market. Investors should keep an eye on these companies for promising opportunities.

Digital Advertising Stocks Shining Bright: A Look Ahead to 2025

If you’ve been keeping an eye on the ever-evolving world of digital marketing, you’re in for a treat! The global digital marketing industry is on a rocket ship trajectory, and it’s set to soar from $410.70 billion in 2024 to a staggering $1.19 trillion by 2033. That’s a phenomenal annual growth rate of around 11.2%. With this kind of expansion, savvy investors are looking for the right stocks to get in on the action. Today, we’ll explore three noteworthy players in the digital advertising space: Thryv Holdings, Inc. (THRY), The Trade Desk, Inc. (TTD), and HubSpot, Inc. (HUBS).

Thryv Holdings: Empowering Small Businesses

First up, let’s talk about Thryv Holdings (THRY). This company specializes in providing digital marketing solutions tailored for small to medium-sized businesses. They offer a suite of services like CRM, SEO, digital advertising, appointment scheduling, and payment processing. Sounds like a one-stop shop for entrepreneurs, right?

Just recently, on October 31, 2024, Thryv made a significant move by acquiring Infusion Software, Inc. (known as Keap) for a cool $80 million. This acquisition is expected to beef up their SaaS (Software as a Service) offerings, giving users even more powerful tools at their fingertips.

In the fiscal third quarter ending September 30, 2024, THRY reported impressive figures with revenue hitting $179.85 million—that’s up 5.6% from the previous year! Additionally, their adjusted EBITDA skyrocketed to $19.62 million, marking a jaw-dropping 167.7% increase year-over-year. Analysts are excited about THRY’s prospects, forecasting revenue of $183.02 million for Q4 2024, which would be a phenomenal 97.9% increase year-over-year.

The Trade Desk: Revolutionizing Ad Campaigns

Next on our list is The Trade Desk (TTD), which has earned quite the reputation as a cloud-based advertising firm that allows marketers to manage their digital ad campaigns effectively. Their focus on improving campaign performance has attracted plenty of attention.

Recently, on November 14, 2024, TTD’s stockholders approved a pivotal change, reincorporating the company from Delaware to Nevada—a strategic move that could potentially enhance their business operations.

Looking at their third-quarter performance, TTD reported a whopping 27.3% increase in revenue, soaring to $628.02 million. Income from operations also jumped to $108.48 million, reflecting an impressive 187.9% growth. For Q4 2024, they expect revenue to climb by 25.3% to $759.32 million and project an EPS increase of 38.6% to $0.57. With a stock gain of 27.1% over the past six months and 65.3% in the past year, investors are definitely taking notice.

HubSpot: A Cornerstone for B2B Companies

Last but not least, we have HubSpot (HUBS), which delivers a comprehensive cloud-based CRM platform designed specifically for mid-market B2B companies. They’ve made headlines lately by acquiring Cacheflow and integrating it into their Commerce Hub offering.

In Q3 2024, HubSpot’s revenue witnessed a solid 20.1% year-over-year growth, reaching $669.72 million, along with a non-GAAP operating income of $125.21 million, up 35.9%. Anticipating a continued upward trend, HUBS expects Q4 2024 revenue to hit $673.96 million, which is a 15.8% growth from the previous year.

On a delightful note, they have consistently surpassed consensus EPS and revenue estimates in each of the last four quarters, giving investors plenty of reasons to cheer. Over the past year, HUBS’ stock has seen a healthy uptick of 22.3%, closing at $714.96.

Final Thoughts

As the digital marketing sector expands rapidly, keeping an eye on stocks like Thryv, The Trade Desk, and HubSpot could prove to be a wise investment. Each of these companies is making significant strides to position themselves at the forefront of the industry. Whether you’re a seasoned investor or new to the game, there’s no denying the exciting growth prospects in the world of digital advertising!