Diamonds and Dogs

8/10/18

The Trade Desk (TTD) is firing on all cylinders.  The data-driven ad buying platform company is jumping 35% following better than expected earnings. The company beat by 16 cents as revenues rose 54.3% year over year to $112.3 million. The Trade Desk also raised guidance for the third quarter and the full year. Marketers are taking to The Trade Desk's algorithmic solutions, and several of its categories including connected TV, audio, mobile video, and mobile in-app saw their numbers more than double. Advertisers that come to the company tend to stick around. Plenty of upgrades with price targets of $130, $130, $122, $126 and one sell rating with a $59 price target.

Another chip company bites the dust. Microchip (MCHP) is down 12% to a three month low following earnings. Microchip actually beat estimates as sales rose 24.7% year over year to $1.21 billion.  Microchip did slightly lower guidance, blaming the guidance on efforts to reduce the excess chip inventory it claims Microsemi shipped to customers -- both distributors and contract manufacturers. Microchip, which unlike Microsemi only recognizes non-GAAP revenue for distributor sales when products are shipped to end-customers, also accused Microsemi of inflating revenue. Microchip announced today that its Board of Directors has declared a record quarterly cash dividend on its common stock of 36.40 cents per share.