The Motley Fool·2025-12-12 08:10The Trade Desk - The Trade Desk has seen its stock decline 71% from its record high, but analysts believe it is undervalued with a median target price of $60 per share, implying a 53% upside from the current price of $39 [10] - The company operates the largest demand-side platform (DSP) for the open internet, which allows media buyers to optimize digital campaigns without bias from owning media content [4][5] - The Trade Desk is particularly strong in connected TV (CTV) advertising, which is the fastest-growing segment in the industry [6] - Despite concerns about slowing growth and increased competition from Amazon, which is undercutting fees, analysts remain optimistic about The Trade Desk's ability to maintain its leadership position due to its independent business model [7][8] - The current valuation of The Trade Desk is 45 times earnings, with expected earnings growth of 20% annually over the next three years [9] MercadoLibre - MercadoLibre's stock has declined 24% from its record high, with a median target price of $2,842 per share, indicating a 42% upside from the current price of $1,999 [10] - The company operates the largest online marketplace in Latin America, benefiting from a strong network effect that enhances value for both buyers and sellers [11][12] - MercadoLibre reported a 39% increase in revenue to $7.4 billion, marking the 27th consecutive quarter of growth exceeding 30%, driven by strong performance in its fintech segment [13] - Although net income increased only 6% to $8.32 per diluted share due to strategic investments, these investments are expected to drive long-term growth [14] - Wall Street anticipates MercadoLibre's earnings will grow at 32% annually over the next three years, making its current valuation of 49 times earnings reasonable [15]