The Trade Desk (TTD) Q4 Earnings Preview Amid 74% Stock Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6h ago
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Source: Fool
- Earnings Guidance: The Trade Desk anticipates Q4 revenue of at least $840 million, reflecting a year-over-year growth of approximately 13%, which indicates a significant slowdown compared to the 22% growth in Q3, potentially impacting investor confidence.
- Stock Performance: The stock has plummeted about 74% from its all-time high of $139, with a cumulative decline of approximately 55% over the past five years, reflecting market concerns over its high valuation.
- Customer Retention: Despite the stock's poor performance, The Trade Desk maintains a customer retention rate above 95%, extending a streak of 11 consecutive years, indicating the stability of its core business.
- Share Buyback: The company announced an additional $500 million share repurchase authorization in Q3, having already repurchased $310 million worth of shares, demonstrating management's confidence in the company's future.
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: 36.820
Low
39.00
Averages
59.68
High
90.00
Current: 36.820
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.
