Or is the share price too high right now?
The Trade Desk's Valuation Looks Expensive. Can the Stock Outperform in 2025?
Recently, Zacks.com users have been paying close attention to The Trade Desk (TTD). This makes it worthwhile to examine what the stock has in store.
The Trade Desk has delivered big returns to investors. Can it keep it up?
The company recently delivered impressive results, but share prices fell because of valuation concerns.
The Trade Desk's third-quarter 2024 results reflect gains from solid customer retention and a growing usage of UID2.
Loop Capital analyst Rob Sanderson raised the firm's price target on Trade Desk (TTD) to $145 from $120 and keeps a Buy rating on the shares after its Q3 earnings beat. The company's Q3 results were "strong" and its Q4 guidance was likely on the more conservative side, the analyst tells investors in a research note. Loop adds that while 2025 will likely be a lower point for growth, comping against the presidential election, 2026 will benefit from recently expanded collaborations with Netflix (NFLX), Spotify (SPOT), Disney (DIS), Walmart (WMT), LG and others. Trade Desk -7.47 (-5.64%) Netflix -1.54 (-0.19%) Spotify +0.73 (+0.18%) Disney +0.08 (+0.08%) Walmart +1.02 (+1.22%)
The Trade Desk positives are robust revenue growth, expanding margins, and a high customer retention rate. Its partnerships with Roku, Netflix, and Fox have significantly expanded its premium ad inventory, enhancing the value of its programmatic advertising platform. The company's high valuation may deter investors from driving the stock price higher in the near term.
The ad tech leader posted a solid third-quarter report, but valuation concerns caught up with it.
The Trade Desk, Inc. (NASDAQ:TTD ) Q3 2024 Earnings Conference Call November 7, 2024 5:00 PM ET Company Participants Chris Toth - IR Jeff Green - Co-Founder and CEO Laura Schenkein - CFO Conference Call Participants Shyam Patil - Susquehanna Vasily Karasyov - Cannonball Research Jessica Reif Ehrlich - Bank of America Shweta Khajuria - Wolfe Research Laura Martin - Needham Justin Patterson - KeyBanc Dan Salmon - New Street Research Jason Helfstein - Oppenheimer Matthew Swanson - RBC Capital Markets Operator Greetings. Welcome to The Trade Desk Third Quarter 2024 Earnings Conference Call.
The Trade Desk (TTD) came out with quarterly earnings of $0.41 per share, beating the Zacks Consensus Estimate of $0.40 per share. This compares to earnings of $0.33 per share a year ago.
Ad tech firm Trade Desk projected fourth-quarter revenue above Wall Street estimates on Thursday, boosted by strong demand for its digital advertising technologies in the growing connected TV and retail media markets.