The Trade Desk: Intersection of Value and Growth Investing
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4h ago
0mins
Should l Buy TTD?
Source: Fool
- Market Performance Potential: After an 80% decline, The Trade Desk's stock has entered value investing territory, with expectations to outperform the S&P 500 in 2026, prompting investors to buy shares while they are still cheap.
- Advertising Platform Advantage: As a buy-side ad platform, The Trade Desk helps clients place ads in optimal internet locations; despite competition from Amazon, it continues to grow, with an 18% revenue increase last quarter.
- Future Growth Expectations: Wall Street analysts project a 16% revenue growth for The Trade Desk in 2026, which, although slower than previous rates, still exceeds the market's average annual return of 10%, indicating its competitive strength.
- Valuation Attractiveness: The Trade Desk's current price-to-earnings ratio stands at 13 times, significantly lower than the S&P 500's 22.2 times, presenting a rare opportunity for investors to acquire a double-digit growth stock at a discount.
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Analyst Views on TTD
Wall Street analysts forecast TTD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TTD is 59.68 USD with a low forecast of 39.00 USD and a high forecast of 90.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
25 Analyst Rating
15 Buy
9 Hold
1 Sell
Moderate Buy
Current: 26.240
Low
39.00
Averages
59.68
High
90.00
Current: 26.240
Low
39.00
Averages
59.68
High
90.00
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.
The Trade Desk: A Value Investment Opportunity
- Market Share Competition: Although Amazon has captured some market share in the advertising space, The Trade Desk remains a top partner, demonstrating its ability to maintain stability in a highly competitive environment.
- Growth Potential: The Trade Desk's revenue rose 18% last quarter, which, while slower than previous growth rates, still exceeds the market's average annual return of 10%, with a projected 16% revenue growth for 2026, continuing to outperform the market.
- Valuation Appeal: The Trade Desk's stock trades at a dirt-cheap 13 times forward earnings, compared to the S&P 500's 22.2 times, highlighting its value investment potential as a growth stock, attracting investors seeking undervalued opportunities.
- Investment Recommendation: Despite not being included in Motley Fool's current best stock picks, The Trade Desk's ongoing growth in the advertising market and low valuation make it a potential choice for investors looking to outperform the S&P 500 in 2026.
See More
The Trade Desk: Intersection of Value and Growth Investing
- Market Performance Potential: After an 80% decline, The Trade Desk's stock has entered value investing territory, with expectations to outperform the S&P 500 in 2026, prompting investors to buy shares while they are still cheap.
- Advertising Platform Advantage: As a buy-side ad platform, The Trade Desk helps clients place ads in optimal internet locations; despite competition from Amazon, it continues to grow, with an 18% revenue increase last quarter.
- Future Growth Expectations: Wall Street analysts project a 16% revenue growth for The Trade Desk in 2026, which, although slower than previous rates, still exceeds the market's average annual return of 10%, indicating its competitive strength.
- Valuation Attractiveness: The Trade Desk's current price-to-earnings ratio stands at 13 times, significantly lower than the S&P 500's 22.2 times, presenting a rare opportunity for investors to acquire a double-digit growth stock at a discount.
See More
The Trade Desk Stock Hits Historical Low After Sell-Off
- Significant Price Decline: The Trade Desk's stock has plummeted nearly 80% from its all-time highs, despite a remarkable 900% increase over the past decade, indicating a market pessimism regarding its future growth potential with a current market cap of $13 billion.
- Slowing Revenue Growth: The company's revenue growth rate of 18% in Q3, while above Wall Street's 16% expectation, marks the lowest level in recent years, reflecting intensified competition and a trend of clients moving ad placements in-house.
- Increased Competitive Pressure: The Trade Desk faces competition from companies like Amazon, as clients shift to in-house advertising, resulting in a loss of market share and impacting the company's growth trajectory.
- Emerging Investment Opportunity: Despite the significant stock price drop, The Trade Desk trades at a forward P/E ratio below 15, with expectations of continued growth in the coming years, making it a compelling rebound investment opportunity worth considering.
See More
The Trade Desk Stock Plummets, Revealing Investment Opportunity
- Stock Price Decline: The Trade Desk's stock has plummeted nearly 80% from its all-time highs, despite a remarkable 900% growth over the past decade, and currently trades at less than 15 times forward earnings, presenting a potential turnaround investment opportunity.
- Slowing Revenue Growth: The company's revenue growth rate fell to 18% in Q3, the lowest since a COVID-19-affected quarter, yet it remains above Wall Street's expectation of 16%, indicating that the company still possesses growth potential amid rising competition.
- Increased Competition: Some clients have shifted ad placements in-house, while competitors like Amazon are capturing market share, leading to a decline in The Trade Desk's perceived market ceiling and triggering significant stock volatility.
- Long-Term Outlook: Although the stock may not rebound quickly in the short term, The Trade Desk is well-positioned to capitalize on shifts in the advertising market over the next decade, making it a noteworthy investment, especially given its current depressed price.
See More
Trade Desk Inc Named One of the Best Revenue Growth Stocks
- Shareholder Changes: On February 2, Cathie Wood's ARK ETF divested 1,931,578 shares of Trade Desk Inc (TTD) for nearly $58.6 million, indicating concerns about the company's future prospects.
- Rating Adjustments: Wells Fargo maintained an Equal Weight rating on TTD with a price target of $42, noting that the sudden resignation of the CFO could lead to continued fundamental and narrative volatility, impacting the company's competitiveness.
- Price Target Reductions: Several research firms have cut their price targets for Trade Desk, with Rosenblatt lowering from $64 to $53, Truist from $65 to $60, Citi from $50 to $38, Stifel from $90 to $75, and BofA from $49 to $40, reflecting cautious market sentiment regarding its future performance.
- Market Competition: As an independent demand-side platform, Trade Desk faces pressure from competitors like Amazon, and management turnover may hinder its competitiveness in the programmatic digital advertising market, necessitating the search for a candidate with public-company CFO experience to enhance management stability.
See More
The Trade Desk CFO Departure Raises Market Concerns
- Executive Turnover: The Trade Desk's CFO Alex Kayyal resigned on January 24 after just five months, raising concerns about the company's executive culture amid increasing competitive pressures, particularly from Amazon.
- Slowing Revenue Growth: Although The Trade Desk reported an 18% year-over-year revenue increase, this growth rate is significantly lower than that of competitor Amazon, which poses a risk of market share loss for The Trade Desk in the streaming advertising sector.
- Stock Price Decline: Shares of The Trade Desk fell 20% last month and are down 81% from all-time highs, yet the stock still trades at a premium P/E ratio of 30, indicating investor caution regarding its future growth prospects.
- Investment Recommendations: Given the frequent executive changes and intensifying competition, analysts have not included The Trade Desk in their recommended investment list, reflecting a lack of confidence in the company's future performance.
See More
The Trade Desk: A Value Investment Opportunity
- Market Share Competition: Although Amazon has captured some market share in the advertising space, The Trade Desk remains a top partner, demonstrating its ability to maintain stability in a highly competitive environment.
- Growth Potential: The Trade Desk's revenue rose 18% last quarter, which, while slower than previous growth rates, still exceeds the market's average annual return of 10%, with a projected 16% revenue growth for 2026, continuing to outperform the market.
- Valuation Appeal: The Trade Desk's stock trades at a dirt-cheap 13 times forward earnings, compared to the S&P 500's 22.2 times, highlighting its value investment potential as a growth stock, attracting investors seeking undervalued opportunities.
- Investment Recommendation: Despite not being included in Motley Fool's current best stock picks, The Trade Desk's ongoing growth in the advertising market and low valuation make it a potential choice for investors looking to outperform the S&P 500 in 2026.
See More
The Trade Desk: Intersection of Value and Growth Investing
- Market Performance Potential: After an 80% decline, The Trade Desk's stock has entered value investing territory, with expectations to outperform the S&P 500 in 2026, prompting investors to buy shares while they are still cheap.
- Advertising Platform Advantage: As a buy-side ad platform, The Trade Desk helps clients place ads in optimal internet locations; despite competition from Amazon, it continues to grow, with an 18% revenue increase last quarter.
- Future Growth Expectations: Wall Street analysts project a 16% revenue growth for The Trade Desk in 2026, which, although slower than previous rates, still exceeds the market's average annual return of 10%, indicating its competitive strength.
- Valuation Attractiveness: The Trade Desk's current price-to-earnings ratio stands at 13 times, significantly lower than the S&P 500's 22.2 times, presenting a rare opportunity for investors to acquire a double-digit growth stock at a discount.
See More
The Trade Desk Stock Hits Historical Low After Sell-Off
- Significant Price Decline: The Trade Desk's stock has plummeted nearly 80% from its all-time highs, despite a remarkable 900% increase over the past decade, indicating a market pessimism regarding its future growth potential with a current market cap of $13 billion.
- Slowing Revenue Growth: The company's revenue growth rate of 18% in Q3, while above Wall Street's 16% expectation, marks the lowest level in recent years, reflecting intensified competition and a trend of clients moving ad placements in-house.
- Increased Competitive Pressure: The Trade Desk faces competition from companies like Amazon, as clients shift to in-house advertising, resulting in a loss of market share and impacting the company's growth trajectory.
- Emerging Investment Opportunity: Despite the significant stock price drop, The Trade Desk trades at a forward P/E ratio below 15, with expectations of continued growth in the coming years, making it a compelling rebound investment opportunity worth considering.
See More
The Trade Desk Stock Plummets, Revealing Investment Opportunity
- Stock Price Decline: The Trade Desk's stock has plummeted nearly 80% from its all-time highs, despite a remarkable 900% growth over the past decade, and currently trades at less than 15 times forward earnings, presenting a potential turnaround investment opportunity.
- Slowing Revenue Growth: The company's revenue growth rate fell to 18% in Q3, the lowest since a COVID-19-affected quarter, yet it remains above Wall Street's expectation of 16%, indicating that the company still possesses growth potential amid rising competition.
- Increased Competition: Some clients have shifted ad placements in-house, while competitors like Amazon are capturing market share, leading to a decline in The Trade Desk's perceived market ceiling and triggering significant stock volatility.
- Long-Term Outlook: Although the stock may not rebound quickly in the short term, The Trade Desk is well-positioned to capitalize on shifts in the advertising market over the next decade, making it a noteworthy investment, especially given its current depressed price.
See More
Trade Desk Inc Named One of the Best Revenue Growth Stocks
- Shareholder Changes: On February 2, Cathie Wood's ARK ETF divested 1,931,578 shares of Trade Desk Inc (TTD) for nearly $58.6 million, indicating concerns about the company's future prospects.
- Rating Adjustments: Wells Fargo maintained an Equal Weight rating on TTD with a price target of $42, noting that the sudden resignation of the CFO could lead to continued fundamental and narrative volatility, impacting the company's competitiveness.
- Price Target Reductions: Several research firms have cut their price targets for Trade Desk, with Rosenblatt lowering from $64 to $53, Truist from $65 to $60, Citi from $50 to $38, Stifel from $90 to $75, and BofA from $49 to $40, reflecting cautious market sentiment regarding its future performance.
- Market Competition: As an independent demand-side platform, Trade Desk faces pressure from competitors like Amazon, and management turnover may hinder its competitiveness in the programmatic digital advertising market, necessitating the search for a candidate with public-company CFO experience to enhance management stability.
See More
The Trade Desk CFO Departure Raises Market Concerns
- Executive Turnover: The Trade Desk's CFO Alex Kayyal resigned on January 24 after just five months, raising concerns about the company's executive culture amid increasing competitive pressures, particularly from Amazon.
- Slowing Revenue Growth: Although The Trade Desk reported an 18% year-over-year revenue increase, this growth rate is significantly lower than that of competitor Amazon, which poses a risk of market share loss for The Trade Desk in the streaming advertising sector.
- Stock Price Decline: Shares of The Trade Desk fell 20% last month and are down 81% from all-time highs, yet the stock still trades at a premium P/E ratio of 30, indicating investor caution regarding its future growth prospects.
- Investment Recommendations: Given the frequent executive changes and intensifying competition, analysts have not included The Trade Desk in their recommended investment list, reflecting a lack of confidence in the company's future performance.
See More
