Patrick Mahomes' helmet wasn't the only thing that got shattered that day.
It was back on a very cold evening in January when the Kansas City Chiefs quarterback walked back to a huddle during the game against the Miami Dolphins and discovered a hole in his helmet.
Related: Analyst reboots Microsoft stock price target on AI integration
On the previous play Mahomes had taken a hit from the Miami Dolphins safety DeShon Elliott, and the impact of the clash of helmets in the bitter cold sent a shard of red plastic flying.
And when we say cold, we're not kidding.
The temperature at kickoff was minus 4 degrees Fahrenheit (minus 20 C,) with a wind chill of minus 27 F., the Associated Press reported, making it the fourth-coldest in NFL history.
The Chiefs went on to beat the Dolphins, and while Mahomes's headgear took a beating, the game was aired exclusively on Peacock, marking the first time an NFL playoff game was shown behind the paywall of a streaming service and setting a record in the process.
The Chiefs' 26-7 victory averaged 23 million viewers on Peacock, NFL+ and on NBC affiliates in Kansas City and Miami, according to Nielsen, while the game had a total reach of 27.6 million.
The Trade Desk Inc Company
Trade Desk notes 'swerve in viewer behavior'
The average viewership surpassed the previous record of 15.3 million for the Nov. 30 matchup between the Seattle Seahawks and Dallas Cowboys on Amazon (AMZN) Prime Video.
Amazon is paying $1 billion per season until 2033 for the rights to “Thursday Night Football” and has already experimented with other initiatives, such as airing the first-ever NFL game on Black Friday this past season.
Related: Analysts revisit S&P 500 price targets after record run
Netflix (NFLX) is also getting off the bench.
In May, the company and the NFL announced a three-year deal that would see the streaming service run live games on Christmas for a reported $75 million per game.
Trade Desk (TTD) , a programmatic marketing company, likes these numbers.
The Ventura, Calif., company, which recently announced a partnership with Netflix, stated in a report that 43% of Americans surveyed said they’re spending more time on streaming platforms because more of their favorite content is on connected TV.
"This swerve in viewer behavior is prompting advertisers to increase spending on CTV — and in some cases, to lead with CTV in their TV strategy," the company said.
Jeff Green, the company's founder and chief executive, told analysts last month that "more than 90% of the Ad Age Top 200, the largest 200 advertisers in the world, have run advertising campaigns on our platform over the last 12 months."
Trade Desk reported first-quarter earnings of 26 cents a share, up 13% from a year earlier, while revenue rose 28% to $491 million.
Analysts polled by FactSet were expecting earnings of 22 cents a share on revenue of $480 million. A year earlier, Trade Desk earned 23 cents a share on revenue of $383 million.
On Monday, Wedbush analyst Scott Devitt initiated coverage of Trade Desk with an outperform rating and $110 price target.
Wedbush analyst sees catalysts at Trade Desk
Devitt sees multiple drivers to support sustainable, 20%-plus revenue growth, including the ongoing shift to programmatic CTV advertising from linear TV, offsite retail-media growth, and international expansion supported by recent investments to increase market share outside the U.S.
“We think there is upside to industry [connected-TV] estimates, which appear conservative in our view, given the ongoing increase of CTV advertising inventory, growing ad-supported viewership, shifts in sports content rights, and improvements in targeting and measurement of ads on CTV properties," Devitt said.
More Tech Stocks:
- AMD fires latest shot at Nvidia in AI-chip war
- Veteran fund manager sold some Nvidia stock before stock split
- Spotify price increase prompts analysts to retune stock targets
Near-term, the analyst said that a number of catalysts could drive upside to analysts' estimates, including tailwinds from U.S. political spending in the second half of 2024 and the rollout of recent CTV partnerships with key publishers.
Devitt's estimates for 2024 and 2025 revenue are 1% and 3% above consensus, respectively, and he expects the company to sustain a 22% compounded annual growth rate over the next four years.
Last week, Piper Sandler said it continued to view Trade Desk as its top large-cap idea even after the 30% year-to-date move in the stock. The investment firm said it was confident that the company could sustain its 20%-plus year-over-year growth rate over a multiyear period.
Related: Analysts adjust Walmart stock price target after shareholder meeting
Specifically, Piper Sandler says recent partnership announcements — Netflix, Disney+ (DIS) , Roku (ROKU) , and more — will lead to a strong market next year, driving additional spending into connected TV.
The Netflix opportunity alone could drive a low- to mid-single digit percent spending rise in 2025, the firm said.
More near-term basis: Piper Sandler's digital ad checks point to accelerating outperformance for Trade Desk relative to the broader market, as it appears incremental spending is going to CTV.
Piper has an overweight rating on the shares with a price target of $110.
Related: Veteran fund manager picks favorite stocks for 2024
