Group 1 - The Trade Desk (TTD) reported a revenue and earnings beat in its Q3 FY25 earnings, while also raising its full-year guidance beyond expectations, yet investors remained unimpressed [1] - The company is part of a broader trend in the investment landscape, where even positive financial results may not lead to favorable market reactions [1] Group 2 - Amrita leads a boutique family office fund in Vancouver, focusing on sustainable, growth-driven companies that aim to maximize shareholder equity [2] - The fund's strategy includes democratizing financial literacy and simplifying complex macroeconomic concepts for better understanding [2] - Amrita's newsletter, The Pragmatic Optimist, has gained recognition as a top finance newsletter, emphasizing portfolio strategy and valuation [2]

Core Insights - The Trade Desk, Inc. (TTD) has not met expectations regarding its independent Demand-Side Platform (DSP) story, particularly with Kokai/OpenPath not contributing positively to its FQ2'25 performance [1] Group 1: Company Performance - The performance of The Trade Desk in FQ2'25 has been under scrutiny, with specific reference to the lack of accretive impact from Kokai/OpenPath [1] Group 2: Analyst Perspective - The analysis aims to provide contrasting views on investment opportunities based on the analyst's extensive experience and insights [1]

Core Insights - The Trade Desk, Inc. (TTD) was initially covered in April, with a focus on technical analysis, leading to a temporary stock gain before a pullback occurred [1] Group 1 - The analyst has a strong focus on the tech sector and holds a Bachelor of Commerce Degree with Distinction, majoring in Finance [1] - The analyst is a lifetime member of the Beta Gamma Sigma International Business Honor Society, emphasizing values such as Excellence, Integrity, Transparency, and Respect [1] - The analyst encourages constructive criticism and feedback from readers to improve the quality of future work [1]

Group 1 - The Trade Desk, Inc. (TTD) is currently one of the worst-performing stocks in the market for 2025, primarily due to high valuations coupled with unexpected competition and market share losses [1] Group 2 - The investment strategy focuses on identifying companies with strong qualitative attributes, purchasing them at attractive prices based on fundamentals, and holding them long-term [2] - The portfolio management approach aims to avoid underperforming stocks while maximizing exposure to high-potential winners, often resulting in a 'Hold' rating for companies with limited growth opportunities or high downside risks [2]

Harding Loevner, an asset management company, released its “Global Equity Strategy” third-quarter 2025 investor letter.  A copy of the letter can be downloaded here. The fund returned 2.62% gross (2.52% net) in the third quarter of 2025, compared to a 7.74% return for the MSCI All Country World Index and 7.36% gain for the MSCI World Index. YTD, the strategy rose 10.61% (net) compared to 18.86% and 17.83% for the indexes. The firm highlighted in the letter that the last six months represented one of the str ...

Core Insights - The article provides a comprehensive market analysis of The Trade Desk, focusing on its performance and strategic positioning within the advertising technology sector [1] Group 1: Company Performance - The Trade Desk reported a revenue increase of 25% year-over-year, reaching $1.2 billion in the last fiscal year [1] - The company's net income for the same period was $200 million, reflecting a significant growth compared to the previous year [1] - The Trade Desk's market share in the programmatic advertising space has expanded, now accounting for approximately 15% of the total market [1] Group 2: Industry Trends - The programmatic advertising market is projected to grow at a compound annual growth rate (CAGR) of 20% over the next five years, driven by increased digital ad spending [1] - There is a notable shift towards data-driven advertising solutions, with companies increasingly investing in technology to enhance targeting and measurement capabilities [1] - The competitive landscape is intensifying, with new entrants emerging and established players enhancing their offerings to capture market share [1]

Core Viewpoint - The Trade Desk Inc. has experienced a significant decline in its stock price, falling 70% from its peak last year, returning to levels last seen in 2020, primarily due to investor concerns over digital advertising budgets and consumer spending [2][3]. Group 1: Operational Performance - Despite the stock price collapse, The Trade Desk continues to show strong operational performance, consistently exceeding analyst expectations in its quarterly results [3]. - The company reported year-over-year revenue growth in the high teens, along with earnings per share that also surpassed expectations [5]. - Customer retention remains above 95%, and management's forward guidance is well ahead of consensus, indicating confidence in the company's fundamentals [6]. Group 2: Valuation and Market Position - The Trade Desk's stock has not been this cheap in years, with its price-to-earnings (P/E) ratio dropping from over 200 last year to around 60 today, reflecting a significant reset in valuation [8]. - The stock is trading along a long-term support line that has held multiple times in the past, suggesting potential for recovery [3]. - The extension of a $500 million share-buyback program by management implies a belief that the stock is undervalued, further supporting the notion that the market may have overreacted to recent declines [6].

Core Viewpoint - The stock market is expected to reach record highs by the end of 2025, prompting value-oriented investors to consider significant portfolio rotations for the upcoming year [1]. Group 1: Market Trends - The year 2025 has been characterized by notable disparities among market participants, with significant winners and losers emerging [1]. Group 2: Analyst Background - Gary Alexander has extensive experience in covering technology companies on Wall Street and has worked in Silicon Valley, providing insights into current industry themes [1]. - He has been a contributor to Seeking Alpha since 2017 and has been featured in various web publications, with his articles also appearing on popular trading apps like Robinhood [1].

Core Insights - The Trade Desk, Inc. (TTD) is strategically positioned for growth through 2026, driven by innovations in its Kokai platform and strong digital advertising demand, reporting Q3 revenues of $739 million, an 18% year-over-year increase [1][9] Group 1: Innovations and Product Developments - TTD introduced three major innovations in Q4, including a platform upgrade and two new products aimed at enhancing long-term growth [2] - The revamped data marketplace is designed to be more competitive and AI-driven, offering richer data and better rewards for contributors [2] - The launch of Audience Unlimited allows users to access and layer third-party data more freely, enhancing campaign performance [3] - Trading Modes, which provide flexibility in ad buying, will enable users to choose their level of control, supported by agentic AI for performance optimization [3][4] Group 2: Market Position and Competitive Landscape - TTD is well-positioned to capture market share in 2026, supported by the expansion of Kokai adoption, growth in CTV and retail media, and strong client retention [5] - Competitors like Magnite and Taboola are also innovating; Magnite reported an 18% growth in CTV, while Taboola's new platform, Realize, leverages AI to enhance performance advertising [6][7] Group 3: Financial Performance and Valuation - TTD's shares have declined 72.3% over the past year, contrasting with the S&P 500's rise of 15.4% [10] - The forward price/earnings ratio for TTD is 31.16X, higher than the Internet Services industry's 29.43X [11] - The Zacks Consensus Estimate for TTD's earnings for 2025 has increased over the past 60 days, indicating positive sentiment [13]

Core Insights - Brown Advisory's Large-Cap Growth Strategy reported a net return of -0.88% in Q3 2025, underperforming the Russell 1000 Growth Index due to underweighting speculative momentum-driven stocks despite significant exposure to AI [1] - The Trade Desk, Inc. (NASDAQ:TTD) experienced a one-month return of -16.25% and a 52-week decline of 71.36%, closing at $39.95 with a market capitalization of $19.533 billion on December 2, 2025 [2] - The Trade Desk's quarterly results slightly exceeded consensus, but its Q3 guidance disappointed investors compared to strong performances from peers like Meta, Google, and Amazon [3] Company Performance - The Trade Desk transitioned 75% of its customers to its new AI-powered platform, Kokai, with full adoption expected by year-end, leading to improved ROI for customers [3] - The Trade Desk reported revenue of $739 million in Q3 2025, reflecting an 18% year-over-year growth [4] - The number of hedge funds holding The Trade Desk decreased from 60 to 42 in Q3 2025, indicating a decline in popularity among institutional investors [4] Market Position - The Trade Desk is recognized as one of the largest independent demand-side advertising platforms globally, positioning itself for long-term growth in digital advertising [3] - Despite its potential, certain AI stocks are viewed as having greater upside potential and less downside risk compared to The Trade Desk [4]