TTD Should I Buy
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The Trade Desk (TTD) is not a strong buy for a beginner, long-term investor at this time. The stock is currently facing significant industry headwinds, negative technical indicators, and mixed analyst sentiment. While the company has shown modest financial growth, the ongoing trust crisis with major partners like Publicis and valuation struggles make it a less favorable investment in the short term. It is advisable to monitor the stock for potential resolution of these issues before considering an entry.
The technical indicators for TTD are bearish. The MACD is negative and expanding downward, RSI indicates the stock is oversold at 19.889, and moving averages are in a bearish configuration (SMA_200 > SMA_20 > SMA_5). Key support levels are at 22.036 and 20.361, with resistance at 24.749 and 27.461. The stock is trading below its pivot point, suggesting continued downward pressure.
Hedge funds are heavily buying the stock, with a 285,630.83% increase in buying activity over the last quarter. The appointment of Drew Vollero as CFO and Board member may enhance financial management and strategic planning.
Insiders are selling heavily, with a 6,783.72% increase in selling activity over the last month. The company is facing a trust crisis with Publicis, one of its largest partners, and scrutiny over its industry-high take rate. Analysts have downgraded the stock, citing structural challenges and valuation struggles.
In Q4 2025, revenue grew by 14.27% YoY to $846.79 million, net income increased by 2.59% YoY to $186.95 million, and EPS rose by 8.33% YoY to $0.39. However, gross margin dropped by 1.24% YoY to 80.74%, indicating some pressure on profitability.
Analyst sentiment is mixed. Benchmark and Needham maintain Buy ratings with price targets of $40 and $32, respectively, citing potential overreaction to recent challenges. However, Jefferies, Rosenblatt, and Stifel have downgraded the stock to Hold or Neutral, with price targets ranging from $22 to $26, citing structural challenges, valuation concerns, and lack of near-term catalysts.
