UTMCAP TMT - Stock Pick - Research
Based on my research of the TMT sector and review of your existing UTMCAP analysis, I've identified strong companies outside of semiconductors, cloud security, and business intelligence. These companies demonstrate robust financial performance, strategic market positioning, and compelling growth trajectories.
Recommended TMT Companies for Analysis
1. The Trade Desk (TTD)
Ticker Symbol: TTD (NASDAQ)
Company Overview:
The Trade Desk operates a leading independent demand-side platform (DSP) for programmatic advertising, specializing in connected TV (CTV), display, mobile, and audio advertising . The company is positioned at the intersection of digital advertising transformation and AI-powered targeting, with CTV representing approximately
Key Performance Indicators:
- Q3 2025 revenue reached
million, representing YoY growth (or excluding political advertising spend) - Adjusted EBITDA of
million with a strong margin - Net income grew
YoY to million with a net income margin - Full-year 2024 revenue was
billion, up YoY, with earnings increasing - Strong international momentum with video/CTV as the largest and fastest-growing channel
Strategic Rationale:
The Trade Desk benefits from secular trends in CTV adoption, programmatic advertising growth, and the shift away from traditional TV. Unlike cloud security or business intelligence plays, TTD operates in the digital advertising technology sub-sector with differentiated AI-powered optimization and premium inventory access .
2. Shopify (SHOP)
Ticker Symbol: SHOP (NYSE/TSX)
Company Overview:
Shopify provides a comprehensive e-commerce platform enabling merchants of all sizes to build, manage, and scale online stores . The company operates in the e-commerce enablement and fintech sub-sector, offering subscription software, payment processing, fulfillment, and merchant financial services .
Key Performance Indicators:
- Q3 2025 revenue of
billion, exceeding forecasts by and representing YoY growth - Gross Merchandise Volume (GMV) surged
YoY to billion - Free cash flow margin expanded to
of revenue, demonstrating operational leverage - Merchant Solutions revenue jumped
while Subscription Solutions grew - Europe now contributes
of overall revenue, with international GMV up (or constant currency) - Consistent quarterly acceleration:
growth in Q1, in Q2, and in Q3 2025
Shopify is capturing market share in the massive e-commerce transition, with strong international expansion and enterprise client wins. The company's AI-driven tools and vertically integrated payments/fulfillment create network effects and switching costs, positioning it for continued dominance in merchant enablement .
UTMCAP TMT - Stock Pick - Research
3. Toast, Inc. (TOST)
Ticker Symbol: TOST (NYSE)
Company Overview:
Toast operates a vertically integrated cloud-based restaurant management platform combining point-of-sale (POS) software, payment processing, payroll, and fintech services . The company targets the
Key Performance Indicators:
- Q3 2025 Adjusted EBITDA of
million with impressive margins, expanding percentage points YoY - Recurring gross profit (fintech + subscriptions) grew
YoY with a combined take rate of basis points - Q2 2025 added a record
net restaurant locations, reaching global locations - Annualized Recurring Revenue (ARR) exceeded
billion, growing YoY - GAAP operating income of
million demonstrates path to profitability - Payments take rate increased
basis points YoY to basis points through optimization and new products
Strategic Rationale:
Toast dominates the restaurant vertical with high switching costs and expanding fintech attach rates. The company benefits from digital transformation in restaurants (automation, cloud POS, integrated ecosystems) and demonstrates strong unit economics with
4. PubMatic (PUBM)
Ticker Symbol: PUBM (NASDAQ)
Company Overview:
PubMatic operates an independent sell-side platform (SSP) for publishers in programmatic advertising, with particular strength in connected TV and supply path optimization . The company owns its own infrastructure rather than relying on cloud providers, creating cost advantages .
Key Performance Indicators:
- Q2 2025 revenue of
million, up YoY, with strong sequential momentum - CTV revenue now represents
of total revenue, growing over YoY - Supply Path Optimization (SPO) represents
of total platform activity, driving efficiency for advertisers - Performance marketers and mid-tier DSPs showed
YoY ad spend growth - Adjusted EBITDA margins of approximately
with capital-efficient infrastructure model - Q3 2025 processed
trillion ad impressions while reducing unit costs YoY
Strategic Rationale:
PubMatic benefits from the same CTV advertising boom as The Trade Desk but from the publisher/supply side. The company's owned infrastructure provides structural cost advantages, and CTV ad spend is projected to surpass
5. Roku (ROKU)
Ticker Symbol: ROKU (NASDAQ)
Company Overview:
Roku operates the leading streaming platform in the U.S. with a two-sided marketplace connecting viewers, content publishers, and advertisers . The company monetizes through platform advertising, content distribution, and premium subscriptions .
Key Performance Indicators:
- Q2 2025 GAAP revenue of
billion, up YoY, with platform revenue growing to million - Q3 2025 total net revenue reached
billion, representing YoY growth - Streaming hours reached
billion in Q2 2025, demonstrating strong engagement - Ad revenues growing faster than the U.S. OTT advertising market, indicating market share gains
- Deferred revenue from premium subscriptions hit
million in Q1 2025 - Roku Channel is the #2 most engaged app in the U.S.
- Total of
million streaming households at end of 2024, up YoY
Strategic Rationale:
Roku uniquely controls the "gateway to streaming" with its operating system on smart TVs and streaming devices. The company benefits from secular CTV advertising growth, subscription revenue sharing, and AI-powered home screen monetization . Unlike device-focused plays, Roku's platform business provides recurring, high-margin revenue streams .