Core Insights - The Trade Desk is experiencing strong performance in 2024, driven by several secular tailwinds in the advertising industry, including the shift to streaming and the adoption of UID 2.0 [2][4] - The company reported mixed earnings results, with a revenue miss in Q4 2023 but a strong beat in Q1 2024, leading to a stock increase of 43.26% since the last analysis [2][4] - The stock rating has been downgraded from Strong Buy to Buy, reflecting a more cautious outlook despite the company's growth potential [4] Industry Trends - The advertising industry is increasingly adopting UID 2.0, a privacy-focused identifier that allows marketers to use first-party data for ad targeting, contrasting with Google's proprietary privacy sandbox [5] - Connected TV (CTV) is shifting towards open platforms, benefiting The Trade Desk as advertisers seek alternatives to closed ecosystems dominated by Google and Meta [6] - CTV ad spending has surged nearly 400% since 2019, while linear TV ad spending is projected to decline from $61.31 billion in 2023 to $56.83 billion by 2027 [6] Company Performance - The Trade Desk's Q1 2024 revenue grew by 28% year-over-year to $491 million, exceeding guidance, with a strong customer retention rate of over 95% [8][9] - The company achieved a non-GAAP adjusted net income of $131 million in Q1 2024, with free cash flow of $176 million [12][14] - Management's guidance for Q2 2024 anticipates revenue of $575 million, a 24% year-over-year increase [14] Financial Metrics - The Trade Desk's price-to-sales (P/S) ratio is 23.75, slightly above its five-year median, indicating potential overvaluation [17] - The company has a strong balance sheet with $1.4 billion in cash and no debt, positioning it well for future growth [14] - Analysts expect the company to grow revenue at a CAGR of 15.26% over the next ten years, with some projecting a higher growth rate of 20.81% over the next five years [24][25] Investment Considerations - The stock may be overvalued in the short term, but aggressive growth investors may find it appealing due to its potential for sustained revenue growth [29] - The Trade Desk's focus on growth over immediate profitability, along with its innovative ad technology, suggests a long-term investment opportunity [12][29] - The company faces competition from major players like Adobe, Microsoft, and Amazon, which could impact its market position [16]

The Trade Desk helps marketers purchase digital advertising programmatically.Fool.com contributor Parkev Tatevosian highlights the factors that every investor interested in The Trade Desk (TTD 1.61%) stock should know.*Stock prices used were the afternoon prices of June 16, 2024. The video was published on June 18, 2024. ...

Group 1 - The article discusses the investment position of Parkev Tatevosian, CFA, who has no holdings in the stocks mentioned [1] - The Motley Fool has positions in and recommends The Trade Desk, indicating a positive outlook on the company [1] - Parkev Tatevosian is affiliated with The Motley Fool and may receive compensation for promoting its services, which could influence his opinions [1]

Urupong Introduction & Investment Thesis Trade Desk (NASDAQ:TTD) is a cloud-based ad-buying platform that helps ad buyers such as brands and advertising agencies create, execute, measure, and optimize targeted ad campaigns across ad formats and channels that include Connected TV ("CTV"), display, and audio, among others. The company has outperformed the S&P 500 and Nasdaq 100 YTD. I initiated a "buy" rating on the stock on March 22, and my thesis was predicated on my belief that with secular growth drivers ...

Don't miss out on this up-and-coming growth stock."The very best way to make money is in a small growth company that has been profitable for a couple of years and simply goes on growing."-- Peter Lynch Everyone is eager to find the next Nvidia. And why wouldn't they be? Its stock is up a staggering 934% since October 2022.So, where does one go when looking for the next Nvidia? One answer is provided by Peter Lynch, who is one of the greatest investors of all time. As the quote above says, it's best to look ...

The Trade Desk (TTD) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.Over the past month, shares of this digital-advertising platform operator have returned +7%, compared to the Zacks S&P 500 composite's +3.1% change. During this period, the Zacks Internet - Services industry, which The Trade Desk falls in, has gained 4.4%. The key question now is: What could be th ...

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends The Trade Desk. The Motley Fool has a disclosure policy.Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

The Trade Desk (TTD) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.Over the past month, shares of this digital-advertising platform operator have returned +14.8%, compared to the Zacks S&P 500 composite's +4.3% change. During this period, the Zacks Internet - Services industry, which The Trade Desk falls in, has gained 1.5%. The key question now is: What could be the stock's future d ...

Investors looking to buy a relatively cheaper AI stock would do well to take a closer look at this name thanks to its solid position in a lucrative market.There is no doubt that Nvidia (NVDA 3.58%) has been one of the top artificial intelligence (AI) stocks to buy on the market in the past year-and-a-half thanks to the critical role it is playing in the advancement of this technology.After all, training large language models (LLMs) such as ChatGPT wouldn't have been possible without chips from Nvidia. Major ...

Key PointsThe Trade Desk is a leading buy-side programmatic advertising platform provider operating as a one-stop shop for advertisers to automate, analyze and optimize their ad spending and marketing campaigns.The Trade Desk affirms that connected TV (CTV) is the fastest-growing advertising channel, driven by free ad-supported digital video ads and social media ad spending.The Trade Desk beat Q1 2024 EPS consensus estimates by 26 cents as revenues rose 28.3% YoY and raised its Q2 2024 top and bottom line g ...