The Trade Desk, Inc. (TTD), headquartered in Ventura, California, operates as a technology company. Valued at $17.7 billion by market cap, the company offers a self-service cloud-based ad-buying platform that allows buyers to plan, manage, optimize, and measure data-driven digital advertising campaigns.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and TTD perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the advertising agencies industry.TTD’s robust platform and commitment to innovation drive market share growth in digital advertising, offering optimized ad impressions and superior client services.
Despite its notable strength, TTD slipped 74.4% from its 52-week high of $141.53, achieved on Dec. 4, 2024. Over the past three months, TTD stock has declined 20.5%, underperforming the Nasdaq Composite’s ($NASX) 3.2% gains during the same time frame.
In the longer term, shares of TTD dipped 46.8% on a six-month basis and fell 72.7% over the past 52 weeks, significantly underperforming NASX’s six-month gains of 18.8% and solid 15.7% returns over the last year.
To confirm the bearish trend, TTD has been trading below its 50-day moving average since early August, with minor fluctuations. The stock has been trading below its 200-day moving average since mid-February, with a slight fluctuation.
TTD's recent dip is due to concerns about slowing growth, tougher competition, and its ability to maintain its high growth rate.
On Nov. 6, TTD shares closed down more than 3% after reporting its Q3 results. Its adjusted EPS of $0.45 surpassed Wall Street expectations of $0.44. The company’s revenue was $739.4 million, surpassing Wall Street forecasts of $718.2 million. For Q4, TTD expects revenue to be $840 million.
In the competitive arena of advertising agencies, Magnite, Inc. (MGNI) has taken the lead over TTD, showing resilience with a 7.4% downtick on a six-month basis and 3.8% losses over the past 52 weeks.
Wall Street analysts are reasonably bullish on TTD’s prospects. The stock has a consensus “Moderate Buy” rating from the 37 analysts covering it, and the mean price target of $62.38 suggests an ambitious potential upside of 72.4% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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