AI Stocks Continue to Lead Market Returns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy TTD?
Source: Fool
- Market Return Analysis: According to JPMorgan, AI stocks have accounted for about 75% of S&P 500 returns since the launch of ChatGPT in late 2022, highlighting the significant impact of AI technology on market performance and driving stock prices of related companies higher.
- Trade Desk Price Target: Stifel analyst Mark Kelley set a target price of $74 per share for The Trade Desk, implying a 196% upside from its current price of $25; while most analysts do not expect such high returns in the short term, they generally agree that the stock is undervalued.
- Datadog Market Outlook: Monness analyst Brian White established a target price of $255 per share for Datadog, indicating a 112% upside from its current price of $120, reflecting optimistic market expectations for its future growth, particularly in IT monitoring and security software.
- Competitive Advantages: The Trade Desk's independent business model avoids conflicts of interest with media content, positioning it as a leader in the open internet advertising market, while Datadog is highly regarded for its leadership in digital experience monitoring and AI for IT operations, both expected to benefit from rapid market growth ahead.
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Analyst Views on TTD
Wall Street analysts forecast TTD stock price to rise
28 Analyst Rating
15 Buy
12 Hold
1 Sell
Moderate Buy
Current: 25.500
Low
38.00
Averages
53.33
High
85.00
Current: 25.500
Low
38.00
Averages
53.33
High
85.00
About TTD
The Trade Desk, Inc. is a global advertising technology company. The Company offers a self-service, cloud-based ad-buying platform that empowers its clients to plan, manage, optimize and measure more expressive data-driven digital advertising campaigns. Its platform allows clients to execute integrated campaigns across ad formats and channels, including connected television (CTV) and other video, display, audio, and native, on a multitude of devices, such as televisions, streaming devices, mobile devices, computers and digital-out-of-home devices. Its platform’s integrations with inventory, publisher and data partners provide ad buyers reach and decisioning capabilities, and its enterprise application programming interfaces (APIs) enable its clients to customize and expand platform functionality. Its platform provides auto-optimization features that allow buyers to automate their campaigns and support them with computer-generated modeling and decision-making.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Baron Asset Fund Outperforms Benchmark with 7.89% Gain in Q4
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- Portfolio Adjustments: During the quarter, the fund reestablished a position in Repligen (RGEN) and added Booz Allen Hamilton (BAH), Birkenstock (BIRK), Welltower (WELL), and Axon Enterprise (AXON), indicating a focus on diversification in its investments.
- Asset Sale Strategy: In Q4, Baron Asset Fund sold Trade Desk (TTD), Gartner (IT), IDEXX Laboratories (IDXX), Dayforce (DAY), and IDEX (IEX), which may be aimed at optimizing its portfolio and locking in profits.
- Market Environment Impact: Despite the overall decline of the Russell Midcap Growth Index, Baron Asset Fund's standout performance reflects its ability to navigate uncertain market conditions with flexibility and investment foresight.
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- Media Rights Deal: The NBA's 11-year, $77 billion media rights agreement with Comcast, Disney, and Amazon is expected to further boost team valuations, with the average franchise now valued at $5.52 billion, an 18% increase from last year.
- Attracting Young Audiences: By focusing on partnerships with creators, the NBA aims to engage Generation Z and Generation Alpha, as a survey revealed that 61% of Gen Z respondents prefer user-generated content, suggesting this strategy could enhance youth engagement.
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AI Stocks Continue to Lead Market Returns
- Market Return Analysis: According to JPMorgan, AI stocks have accounted for about 75% of S&P 500 returns since the launch of ChatGPT in late 2022, highlighting the significant impact of AI technology on market performance and driving stock prices of related companies higher.
- Trade Desk Price Target: Stifel analyst Mark Kelley set a target price of $74 per share for The Trade Desk, implying a 196% upside from its current price of $25; while most analysts do not expect such high returns in the short term, they generally agree that the stock is undervalued.
- Datadog Market Outlook: Monness analyst Brian White established a target price of $255 per share for Datadog, indicating a 112% upside from its current price of $120, reflecting optimistic market expectations for its future growth, particularly in IT monitoring and security software.
- Competitive Advantages: The Trade Desk's independent business model avoids conflicts of interest with media content, positioning it as a leader in the open internet advertising market, while Datadog is highly regarded for its leadership in digital experience monitoring and AI for IT operations, both expected to benefit from rapid market growth ahead.
See More
Analysts See Upside in The Trade Desk and Datadog
- Trade Desk Valuation Potential: Despite an 80% drop from its peak, analysts expect The Trade Desk's adjusted earnings to grow at 13% annually through 2026, making the current 15 times earnings valuation appear relatively cheap, suggesting a buying opportunity for investors.
- Target Price Expectations: The median target price for The Trade Desk's stock is $50 per share, indicating a 100% upside from the current price of $25, reflecting optimistic market expectations for its future performance.
- Datadog's Market Leadership: Datadog is recognized by Gartner as a leader in digital experience monitoring and observability tools, with related markets projected to grow at approximately 16% annually, showcasing its strong competitive position in the rapidly evolving IT monitoring sector.
- Earnings Growth and R&D Investment: Datadog reported a 20% adjusted earnings growth in Q4, and although its current valuation of 60 times earnings seems high, the company's significant investment in R&D provides room for accelerated earnings growth in the future, with analysts generally optimistic about its 50% upside potential.
See More
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- Trade Desk's Slowing Growth: The Trade Desk reported an 18% year-over-year growth in Q3, facing challenges due to reduced political ad spending; however, with a projected 17% revenue growth for 2026, its current low valuation presents a compelling entry point for investors.
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- Microsoft Valuation Drop: Microsoft's price-to-earnings ratio has fallen to its lowest level outside of the 2023 sell-off, while still maintaining a dominant industry position, and recent earnings reports indicate growth potential, making this a rare buying opportunity for investors.
- Ad Platform Challenges: The Trade Desk reported an 18% year-over-year growth in Q3, but faced headwinds from reduced political ad spending, with a projected 17% revenue growth for 2026, indicating its long-term growth potential remains intact.
- Nvidia Investment Opportunity: Nvidia's stock is currently trading at a mere 24 times forward earnings, despite being projected to grow at a 64% pace in FY 2027, highlighting its investment value amid ongoing increases in AI spending.
- Market Rebound Potential: The recent weakness in the stock market has opened up buying opportunities for investors, particularly in stocks like Microsoft, The Trade Desk, and Nvidia, which could yield outsized returns in the future, prompting investors to act swiftly to capitalize on these opportunities.
See More
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- Strong Fund Performance: Baron Asset Fund achieved a 7.89% gain in Q4, significantly outperforming the benchmark Russell Midcap Growth Index, which declined by 3.70%, demonstrating the effectiveness of its investment strategy and market adaptability.
- Portfolio Adjustments: During the quarter, the fund reestablished a position in Repligen (RGEN) and added Booz Allen Hamilton (BAH), Birkenstock (BIRK), Welltower (WELL), and Axon Enterprise (AXON), indicating a focus on diversification in its investments.
- Asset Sale Strategy: In Q4, Baron Asset Fund sold Trade Desk (TTD), Gartner (IT), IDEXX Laboratories (IDXX), Dayforce (DAY), and IDEX (IEX), which may be aimed at optimizing its portfolio and locking in profits.
- Market Environment Impact: Despite the overall decline of the Russell Midcap Growth Index, Baron Asset Fund's standout performance reflects its ability to navigate uncertain market conditions with flexibility and investment foresight.
See More
NBA's New Strategy with Content Creators Takes Shape
- Creator Engagement: The NBA engaged over 200 global creators during All-Star weekend, indicating the league's willingness to collaborate with content creators rather than restrict their game access, thereby enhancing connections with younger audiences.
- Media Rights Deal: The NBA's 11-year, $77 billion media rights agreement with Comcast, Disney, and Amazon is expected to further boost team valuations, with the average franchise now valued at $5.52 billion, an 18% increase from last year.
- Attracting Young Audiences: By focusing on partnerships with creators, the NBA aims to engage Generation Z and Generation Alpha, as a survey revealed that 61% of Gen Z respondents prefer user-generated content, suggesting this strategy could enhance youth engagement.
- Personalized Viewing Experience: The NBA plans to leverage AI for hyper-personalized broadcasts, allowing viewers to choose different commentary styles and languages, which may attract more viewers but also risks fragmenting audience attention.
See More
AI Stocks Continue to Lead Market Returns
- Market Return Analysis: According to JPMorgan, AI stocks have accounted for about 75% of S&P 500 returns since the launch of ChatGPT in late 2022, highlighting the significant impact of AI technology on market performance and driving stock prices of related companies higher.
- Trade Desk Price Target: Stifel analyst Mark Kelley set a target price of $74 per share for The Trade Desk, implying a 196% upside from its current price of $25; while most analysts do not expect such high returns in the short term, they generally agree that the stock is undervalued.
- Datadog Market Outlook: Monness analyst Brian White established a target price of $255 per share for Datadog, indicating a 112% upside from its current price of $120, reflecting optimistic market expectations for its future growth, particularly in IT monitoring and security software.
- Competitive Advantages: The Trade Desk's independent business model avoids conflicts of interest with media content, positioning it as a leader in the open internet advertising market, while Datadog is highly regarded for its leadership in digital experience monitoring and AI for IT operations, both expected to benefit from rapid market growth ahead.
See More
Analysts See Upside in The Trade Desk and Datadog
- Trade Desk Valuation Potential: Despite an 80% drop from its peak, analysts expect The Trade Desk's adjusted earnings to grow at 13% annually through 2026, making the current 15 times earnings valuation appear relatively cheap, suggesting a buying opportunity for investors.
- Target Price Expectations: The median target price for The Trade Desk's stock is $50 per share, indicating a 100% upside from the current price of $25, reflecting optimistic market expectations for its future performance.
- Datadog's Market Leadership: Datadog is recognized by Gartner as a leader in digital experience monitoring and observability tools, with related markets projected to grow at approximately 16% annually, showcasing its strong competitive position in the rapidly evolving IT monitoring sector.
- Earnings Growth and R&D Investment: Datadog reported a 20% adjusted earnings growth in Q4, and although its current valuation of 60 times earnings seems high, the company's significant investment in R&D provides room for accelerated earnings growth in the future, with analysts generally optimistic about its 50% upside potential.
See More
Investment Opportunities Amid Market Weakness
- Microsoft's Value Rebound: Microsoft's operating profit valuation is nearing its lowest level outside of the 2023 sell-off, and despite recent weakness, its strong growth in the latest earnings report highlights a rare buying opportunity for investors.
- Trade Desk's Slowing Growth: The Trade Desk reported an 18% year-over-year growth in Q3, facing challenges due to reduced political ad spending; however, with a projected 17% revenue growth for 2026, its current low valuation presents a compelling entry point for investors.
- Nvidia's Undervalued Stock: Nvidia trades at a mere 24 times forward earnings, despite a projected 64% growth in FY 2027, and with global data center capital expenditures potentially reaching $3 trillion to $4 trillion by 2030, investors should seize this undervalued opportunity.
- Sustained AI Spending Growth: As AI spending is expected to continue increasing over the next few years, Nvidia stands out as a must-buy stock in the current market environment, making it essential for investors not to miss this opportunity.
See More
Microsoft Stock Hits Low Valuation Amid Market Weakness
- Microsoft Valuation Drop: Microsoft's price-to-earnings ratio has fallen to its lowest level outside of the 2023 sell-off, while still maintaining a dominant industry position, and recent earnings reports indicate growth potential, making this a rare buying opportunity for investors.
- Ad Platform Challenges: The Trade Desk reported an 18% year-over-year growth in Q3, but faced headwinds from reduced political ad spending, with a projected 17% revenue growth for 2026, indicating its long-term growth potential remains intact.
- Nvidia Investment Opportunity: Nvidia's stock is currently trading at a mere 24 times forward earnings, despite being projected to grow at a 64% pace in FY 2027, highlighting its investment value amid ongoing increases in AI spending.
- Market Rebound Potential: The recent weakness in the stock market has opened up buying opportunities for investors, particularly in stocks like Microsoft, The Trade Desk, and Nvidia, which could yield outsized returns in the future, prompting investors to act swiftly to capitalize on these opportunities.
See More
