TTD Should I Buy
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Trade Desk Inc (TTD) is not a strong buy for a beginner, long-term investor with $50,000-$100,000 to invest at this moment. While the company has shown revenue and net income growth in its latest financials, the ongoing tensions with major advertising agencies, downgrades from analysts, and insider selling outweigh the positive hedge fund activity and technical indicators. The stock should be monitored for resolution of these issues before considering a long-term investment.
The MACD is positive and expanding, suggesting bullish momentum, but RSI at 65.321 is neutral, providing no clear signal. Moving averages are bearish (SMA_200 > SMA_20 > SMA_5), and the stock is trading near its resistance levels (R1: 22.881, R2: 23.742). This indicates limited upward potential in the short term.
Hedge funds are significantly increasing their positions in TTD, with a 285630.83% increase in buying activity over the last quarter. The company's revenue and net income have grown YoY, and analysts like Needham and Evercore believe the stock's recent selloff may be overdone.
Insider selling has surged by 6783.72% in the last month. Major advertising agencies like Publicis and Omnicom are conducting audits and pulling recommendations for Trade Desk, creating uncertainty around its revenue streams. Analysts have lowered price targets and downgraded the stock, citing structural challenges and revenue risks.
In Q4 2025, revenue increased by 14.27% YoY to $846.79M, net income rose by 2.59% YoY to $186.95M, and EPS grew by 8.33% YoY to $0.39. However, gross margin declined slightly to 80.74%, down 1.24% YoY.
Analysts have mixed to negative views on TTD. Recent downgrades include Stifel and Rosenblatt lowering ratings to Hold and Neutral, respectively, with reduced price targets. However, firms like Needham and Evercore see the selloff as overdone and maintain Buy/Outperform ratings with higher price targets.
