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KeyBanc Sees Trade Desk Gaining Out Of EU Crackdown On Alphabet, Meta

Published 16/06/2022, 17:01
© Reuters.  KeyBanc Sees Trade Desk Gaining Out Of EU Crackdown On Alphabet, Meta
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  • Given continued scrutiny on Alphabet (NASDAQ:GOOGL) Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) and Meta Platforms Inc (NASDAQ: META), KeyBanc sees a higher probability of regulators requiring walled gardens to open up inventory to demand side platforms (DSPs).
  • Analyst Justin Patterson sees a ~50% probability of Alphabet making concessions on AdTech to the EU, which could prompt similar actions by Meta.
  • Also Read: Facebook (NASDAQ:META), Twitter (NYSE:TWTR), Google Set To Face Hefty EU Fines If Found Not Tackling Fake Accounts
  • Patterson's view is that Overweight-rated The Trade Desk, Inc (NASDAQ: TTD) is the biggest beneficiary of any change.
  • Related: British Antitrust Watchdog Comes After Apple (NASDAQ:AAPL), Google: All You Need To Know
  • Focusing strictly on Europe, Patterson estimate 2023E revenue and EBITDA accretion of 21% and 30%, respectively (assuming 20% share of YouTube, 5% of FB, and 10% take rates), and a potential lift in share price to $72 (vs. its $55 price target).
  • For GOOGL and META, Patterson views revenue loss as negligible vs. potential fines.
  • Related: French Regulator Reaches Truce With Facebook Owner Meta Over Online Ads
  • Price Action: TTD shares traded lower by 7.35% at $44.60 on the last check Thursday.
Latest Ratings for GOOG DateFirmActionFromTo
Mar 2022 Deutsche Bank (ETR:DBKGn)Initiates Coverage OnBuy
Feb 2022JefferiesMaintainsBuy
Feb 2022JP MorganMaintainsOverweight
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