Streaming technology giant Roku Inc. NASDAQ: ROKU may have made more headlines recently for the news that Fox Corp. NASDAQ: FOXA will acquire the smaller firm for $22 billion, but investors should not overlook the signs that Roku's latest earnings report gave regarding the broader connected TV (CTV) advertising space.
Roku posted year-over-year (YOY) revenue growth of 22% in Q2 2026, alongside GAAP earnings per share (EPS) that beat analyst expectations by a massive 47 cents per share. With major improvements to operating margin and total hours streamed, the company had a banner quarter in many ways.
This success may be a sign that the CTV advertising space has the potential to absorb brand spending in a way that may extend beyond Roku and impact other companies in the ad world as well. CTV ad spend is projected to reach $38 billion this year, with key upfront commitment figures expected to beat primetime linear TV commitments.
The three companies below are either already positioned in the CTV ad space or are quickly expanding into it, and could all appeal to investors expecting a spending surge to fuel industry-wide growth, albeit for different reasons.
The Trade Desk Maneuvers Toward CTV Ads, But Massive Challenges Remain
The Trade Desk NASDAQ: TTD aimed to solidify its position in CTV advertising with the launch of the Ventura Ecosystem in February 2026. This platform is a collaborative venture to build revenue efficiency in streaming. TTD's business is complementary to Roku's in that it operates the buy-side platform, providing advertisers the means to purchase ad inventory, while Roku operates on the opposite end with its consumer-facing products.
Trade Desk Today
As of 04:00 PM Eastern
- 52-Week Range
- $12.83
โผ
$56.39
- P/E Ratio
- 17.33
- Price Target
- $19.33
All that said, though, TTD is making headlines for all the wrong reasons these days. Shares have…