As we near 2025, the digital marketing landscape is set for significant transformation, fueled by technological innovations and shifting consumer behaviors. Thus, we recommend top digital advertising stocks Thryv Holdings, Inc. (THRY), The Trade Desk, Inc. (TTD), and HubSpot, Inc. (HUBS), which are leading the charge in revolutionizing online marketing.

Digital marketing is revolutionizing how companies engage with consumers, with augmented reality (AR) and virtual reality (VR) offering immersive brand experiences and AI-powered chatbots enhancing customer interactions. These innovations not only boost user satisfaction but also establish new industry benchmarks.

Additionally, the growing focus on personalized and targeted advertising, driven by advanced analytics and data insights, continues to gain traction. According to IMARC Group, the global digital marketing market is valued at $410.70 billion in 2024 and is projected to reach $1.19 trillion by 2033, growing at a CAGR of 11.2%.

Considering these conducive trends, let’s examine the digital advertising stocks in detail.

Thryv Holdings, Inc. (THRY)

THRY delivers digital marketing solutions and cloud-based tools for small-to-medium businesses, offering services such as CRM, SEO, digital advertising, appointment scheduling, and payment processing. It also features AI-driven tools for website optimization and comprehensive customer experience platforms.

On October 31, THRY finalized its $80 million cash acquisition of Infusion Software, Inc. (Keap), a leading CRM and marketing automation provider for small and medium-sized businesses, further enhancing its SaaS solutions portfolio.

During the fiscal third quarter that ended September 30, 2024, THRY’s revenue was $179.85 million. Its adjusted gross profit grew 5.6% from the year-ago value to $116.84 million. In addition, the company’s adjusted EBITDA came in at $19.62 million, up 167.7% over the prior-year quarter.

Analysts expect THRY’s EPS and revenue for the fourth quarter ending December 31, 2024, to increase 97.9% year-over-year and $ 183.02 million, respectively. It surpassed the Street revenue estimates in each of the trailing four quarters, which is promising.

The stock has plunged to 6.4% in the past month to close the last trading session at $14.16.

THRY’s POWR Ratings reflect its robust outlook. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.

THRY has a B grade in Growth and Value. It is ranked #25 out of 40 stocks in the B-rated Software – Business industry.

Beyond what we have stated above, we also have given THRY grades for Momentum, Stability, Sentiment, and Quality. Get all the THRY’s ratings here.

The Trade Desk, Inc. (TTD)

TTD provides a cloud-based platform for managing and optimizing digital advertising campaigns across various formats and devices. It serves advertising agencies, brands, and service providers with data-driven solutions for enhanced campaign performance.

On November 14, TTD announced that its stockholders approved the company’s reincorporation from Delaware to Nevada through a conversion.

In the fiscal third quarter ended September 30, 2024, TTD’s revenues increased 27.3% year-over-year to $628.02 million. Its income from operations was $108.48 million, up 187.9% from the year-ago value. Moreover, its non-GAAP net income and non-GAAP EPS stood at $207.23 million and $0.41, up 23.9% and 24.2% over the prior-year quarter, respectively.

Street expects TTD’s revenue and EPS for the fourth quarter ending December 31, 2024, to increase 25.3% and 38.6% year-over-year to $ 759.32 million and $0.57, respectively. It surpassed the consensus revenue estimates in all of the trailing four quarters.

The stock climbed 27.1% over the past six months and has returned 65.3% over the past year to close the last trading session at $121.67.

TTD’s POWR Ratings reflect strong prospects. It has an A grade in Growth and a B for Quality. It is ranked #63 out of 126 stocks in the Software – Application industry.

To access TTD’s Value, Momentum, Sentiment, and Stability ratings, click here.

HubSpot, Inc. (HUBS)

HUBS provides a cloud-based CRM platform with tools for marketing, sales, customer service, content management, and operations, alongside professional services for customer support. It primarily serves mid-market B2B companies across the Americas, Europe, and the Asia Pacific.

On October 30, HUBS finalized its acquisition of Cacheflow, a B2B subscription billing management and CPQ solution. Cacheflow, now a wholly owned subsidiary, will be integrated into HubSpot’s Commerce Hub offering.

HUBS’s total revenue increased 20.1% year-over-year to $ 669.72 million in the fiscal third quarter that ended on September 30, 2024. Its non-GAAP operating income came in at $125.21 million, up 35.9% year-over-year. In addition, the company’s non-GAAP net income reached $116.60 million, up 37.3% from the same quarter last year, and non-GAAP net income per share was $2.18, indicating an increase of 34.6% from the prior-year quarter.

Street expects HUBS’s revenue for the fiscal fourth quarter (ending December 31, 2024) to increase 15.8% year-over-year to $673.96 million. Its EPS for the same quarter is expected to grow 24.8% from the prior year to $2.20. In addition, it surpassed the consensus EPS and revenue estimates in each of the trailing four quarters.

The stock climbed 24.6% over the past six months and has returned 22.3% over the past year to close the last trading session at $714.96.

HUBS’s bright prospects are apparent in its POWR Ratings. It has an A grade in Growth and a B for Sentiment. The company operates within the Software – Business industry, and is ranked #21 out of 40 stocks.

Click here to see HUBS’s ratings for Value, Momentum, Stability, and Quality.

What To Do Next?

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THRY shares were unchanged in premarket trading Tuesday. Year-to-date, THRY has declined -30.42%, versus a 26.30% rise in the benchmark S&P 500 index during the same period.

About the Author: Kritika Sarmah

Her interest in risky instruments and passion for writing made Kritika an analyst and financial journalist. She earned her bachelor's degree in commerce and is currently pursuing the CFA program. With her fundamental approach, she aims to help investors identify untapped investment opportunities. More...

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