I have a 'Buy' rating on The Trade Desk due to its attractive valuation, strong technical support, and promising growth potential ahead of Q1 earnings. Despite a disappointing Q4 and a sharp decline, TTD remains strong in high-growth areas like connected TV and retail media, with solid free cash flow. TTD's forward P/E ratio is at an all-time low, making it a cheap buy with a fair value estimate of $63, significantly above the current price.
Trade Desk is financially robust, highly profitable, and well-positioned for the cookieless, AI-driven advertising world, making it an attractive buy at current valuations. Despite a 64% drop from its all-time high, TTD's strong cash flow, debt-free balance sheet, and 95% customer retention rate highlight its resilience. TTD's unique position as an independent, transparent platform in programmatic advertising, especially in growth segments like Connected TV, sets it apart from competitors.
Trade Desk faces temporary setbacks due to a bungled platform transition and sales reorganization, but remains a market leader in DSP with strong AI integration. Key initiatives like Kokai, OpenPath, AI enhancements, and Joint Business Plans are fundamental to leveraging industry trends and driving future growth. Despite Q4 mishaps, Trade Desk's long-term prospects remain strong, though near-term guidance is soft and OpEx is increasing for growth investments.
The Trade Desk, Inc. has faced a perfect storm in the form of a guidance miss and tariff war. Despite competitive pressures and market volatility, TTD's strong balance sheet and reasonable valuation present a solid buying opportunity. The growth runway remains very long and I am targeting 15% annual return potential even before accounting for multiple expansions.
TTD faces challenges due to slower platform adoption and competitive pressures, but strong demand in CTV and key partnerships bode well.
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.
What a difference a year makes! Stocks were riding high in 2024 on artificial intelligence (AI) enthusiasm and a strong U.S. economy.
In the latest trading session, The Trade Desk (TTD) closed at $56.30, marking a -1.4% move from the previous day.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
The Trade Desk (TTD -1.93%) was one of the market's hottest digital advertising stocks. It went public at a split-adjusted price of $1.80 on Sept.
Amid the recent correction in the S&P 500 and Nasdaq, some artificial intelligence (AI) stocks have plunged deep into bear market territory. In extreme cases, some stocks lost more than half their value within a few weeks.
The market recently sold off some of the best-performing growth stocks, as investors are concerned about what the economy will look like given the unknowns of trade and tariff policies. This has caused some stocks that were already selling off before the tariff policy to get hit even harder, which opens up fantastic buying opportunities for long-term investors.