Company Performance - The Trade Desk (TTD) closed at $121.52, with a slight increase of +0.09% from the previous trading day, underperforming the S&P 500 which gained 0.16% [1] - Over the past month, TTD's stock has decreased by 9.38%, compared to a loss of 0.39% in the Computer and Technology sector and a 2.7% loss in the S&P 500 [1] Earnings Forecast - The upcoming earnings report for The Trade Desk is anticipated to show earnings per share (EPS) of $0.58, representing a significant increase of 41.46% year-over-year [2] - Revenue is projected to reach $758.05 million, indicating a growth of 25.13% compared to the same quarter last year [2] Analyst Estimates - Recent changes in analyst estimates for The Trade Desk suggest positive near-term business trends, which are interpreted as favorable for the company's outlook [3] - The Zacks Rank system, which incorporates these estimate changes, currently rates The Trade Desk as 2 (Buy) [5] Valuation Metrics - The Trade Desk has a Forward P/E ratio of 60.67, which is significantly higher than the industry average of 21.96 [6] - The company's PEG ratio stands at 2.4, compared to the Internet - Services industry's average PEG ratio of 1.57 [6] Industry Context - The Internet - Services industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 64, placing it in the top 26% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Insights - The Trade Desk significantly outperformed the S&P 500 by 40 percentage points in 2023, with its shares rising 63.3% compared to the S&P 500's 23.4% increase [1][4]. Group 1: Financial Performance - The Trade Desk's full-year sales increased by 24% in 2023, with a year-over-year growth rate accelerating to 27% in the first three quarters of 2024 [4]. - Despite a downturn in the digital advertising sector in 2022, The Trade Desk's business remained resilient, with earnings rebounding strongly in 2023 [3][4]. - The company's stock is currently valued at 197 times trailing earnings and 114 times free cash flow, indicating a high valuation despite strong business growth [8]. Group 2: Market Position and Strategy - The Trade Desk has introduced an ad-focused operating system for connected TVs and formed new partnerships in the digital advertising market, showcasing its innovative approach [2]. - The company is attempting to enter the connected TV market with its new Ventura platform, although it faces strong competition from established players like Roku and Amazon [5][6]. - The Trade Desk's cost-controlling expertise has attracted ad buyers facing tight budgets, positioning the company favorably in a challenging economic environment [4][7]. Group 3: Future Outlook - The company's fiscal discipline and innovative advertising solutions are expected to yield positive results in a healthier economy [7]. - The ongoing efforts to capture market share in the connected TV space could enhance The Trade Desk's negotiating power for ad-spot rates [6].

Core Viewpoint - The Trade Desk is identified as a strong growth stock due to its impressive earnings and cash flow growth, along with positive earnings estimate revisions, making it a favorable investment opportunity for growth investors [2][11]. Earnings Growth - The Trade Desk has a historical EPS growth rate of 4%, but projected EPS growth for this year is expected to be 21.6%, significantly surpassing the industry average of 14% [5]. Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 140.6%, which is substantially higher than the industry average of -3.7%. Additionally, its annualized cash flow growth rate over the past 3-5 years stands at 21%, compared to the industry average of 14.5% [6][7]. Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for The Trade Desk, with the Zacks Consensus Estimate for the current year increasing by 0.3% over the past month [9]. Overall Positioning - The Trade Desk has achieved a Growth Score of A and a Zacks Rank of 2, indicating strong potential for outperformance in the market, making it an attractive option for growth investors [11].

Core Insights - Ezoic has formed a strategic partnership with The Trade Desk, enhancing its position in the digital advertising ecosystem [1] - The collaboration aims to create a direct and transparent connection between Ezoic's independent publishers and The Trade Desk's advertisers, facilitating easier ad budget allocation [2] - The partnership is focused on addressing the challenges posed by the end of third-party cookies, promoting privacy-forward advertising solutions [3] Company Overview - Ezoic is an AI-driven technology platform that provides solutions for digital publishers, focusing on site monetization, speed, and content management [4] - The Trade Desk operates as a global technology platform for digital advertising buyers, offering advanced solutions across the open internet [5] Partnership Details - The partnership includes ongoing development of Unified ID 2.0, which will work alongside Ezoic's ezID platform to leverage first-party data in a privacy-conscious manner [2] - Early testing indicates that Ezoic publishers are experiencing significant revenue gains, with expectations for continued growth [2] - The integration process between Ezoic and The Trade Desk is already in progress, with deeper collaboration anticipated throughout the year [3]

Core Viewpoint - The article discusses the reliability of Wall Street analysts' recommendations and their impact on stock performance, particularly focusing on The Trade Desk (TTD) and the significance of earnings estimate revisions in determining stock price movements [1][4]. Group 1: Earnings Estimates and Stock Performance - The Zacks Consensus Estimate for The Trade Desk's current year earnings remains unchanged at $1.65, indicating steady analyst views on the company's earnings prospects [2]. - The recent change in consensus estimates, along with other factors, has led to a Zacks Rank of 3 (Hold) for The Trade Desk, suggesting caution in investment decisions [3]. - Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements, emphasizing the importance of these revisions [4]. Group 2: Brokerage Recommendations - The Trade Desk has an average brokerage recommendation (ABR) of 1.56, which is between Strong Buy and Buy, based on recommendations from 32 brokerage firms [5]. - Of the 32 recommendations, 23 are Strong Buy and 2 are Buy, accounting for 71.9% and 6.3% of all recommendations, respectively [6]. - Despite the favorable ABR, the article cautions against making investment decisions solely based on this information, as studies show limited success of brokerage recommendations in identifying stocks with the best price increase potential [8]. Group 3: Limitations of Brokerage Recommendations - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings due to vested interests, leading to a higher number of Strong Buy recommendations compared to Strong Sell [9]. - The interests of brokerage firms may not align with those of retail investors, which can mislead investors regarding future stock price movements [10]. - The Zacks Rank, which is based on earnings estimate revisions, is presented as a more reliable indicator of a stock's near-term price performance compared to ABR [11]. Group 4: Differences Between Zacks Rank and ABR - Zacks Rank and ABR are different measures; ABR is based solely on brokerage recommendations, while Zacks Rank is a quantitative model focused on earnings estimate revisions [12]. - The Zacks Rank is timely and reflects the latest earnings estimates, whereas ABR may not always be up-to-date [15].

Core Viewpoint - The Trade Desk is set to report earnings, with expectations of significant growth in both EPS and revenue compared to the previous year [2][8]. Company Performance - The Trade Desk's stock closed at $121.39, down 1.68% from the previous session, underperforming the S&P 500's loss of 1.11% [1]. - Over the past month, shares have decreased by 3.66%, while the Computer and Technology sector gained 5.27% and the S&P 500 gained 0.4% [7]. Earnings Estimates - The expected EPS for the upcoming earnings report is $0.58, reflecting a growth of 41.46% year-over-year [2]. - The Zacks Consensus Estimate for revenue is projected at $758.05 million, which is a 25.13% increase from the same quarter last year [2]. - Full-year estimates predict earnings of $1.65 per share and revenue of $2.46 billion, indicating year-over-year changes of +30.95% and +26.51%, respectively [8]. Analyst Sentiment - Recent modifications to analyst estimates are crucial, as upward revisions indicate positive sentiment regarding the company's business operations [3]. - The Zacks Rank for The Trade Desk is currently 3 (Hold), with the EPS estimate remaining unchanged over the last 30 days [4]. Valuation Metrics - The Trade Desk has a PEG ratio of 2.96, compared to the industry average of 2.06 [5]. - The Forward P/E ratio stands at 74.96, significantly higher than the industry's Forward P/E of 24.48 [10]. Industry Context - The Internet - Services industry, which includes The Trade Desk, has a Zacks Industry Rank of 40, placing it in the top 16% of over 250 industries [11].

Core Insights - The Trade Desk (TTD) is expecting fourth-quarter 2024 revenues to be at least $756 million, indicating a year-over-year growth of 25% [3] - The Zacks Consensus Estimate for TTD's fourth-quarter 2024 earnings is set at 58 cents per share, reflecting a growth of 41.46% year over year [4] - TTD's earnings have beaten the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 6.09% [5] Financial Performance - TTD's 2024 revenue estimate is pegged at $2.46 billion, indicating a year-over-year growth of 26.51%, with earnings expected at $1.65 per share, showing a growth of 30.95% year over year [14] - The fourth-quarter 2024 revenue estimate has been adjusted to $758.05 million, indicating a year-over-year growth of 25.13% [24] Market Position and Strategy - TTD is benefiting from its innovative portfolio, expanding global footprint, advancements in omnichannel ad inventory, and the growing adoption of programmatic advertising [6] - The company has launched Ventura, a new streaming TV operating system aimed at improving user experience and advertising efficiency [16] - TTD's Connected TV (CTV) business is its largest and fastest-growing segment, with AI-powered solutions helping advertisers target potential customers more effectively [26] Partnerships and Collaborations - TTD has a rich partner base, including major companies like Spotify, Disney, NBCU, Walmart, Roku, LG, Fox, and Netflix, which supports its growth prospects [27] - Recent collaborations include Spotify's extension of its partnership with TTD and Roku's adoption of UID2 for enhanced targeting precision [28] Competitive Landscape - The digital advertising industry is highly competitive, dominated by giants like Google and Amazon, which poses challenges for TTD [9] - Increasing regulatory scrutiny around data privacy and shifts in consumer data practices may disrupt traditional audience targeting methods [29] Valuation - TTD's shares are currently trading at a high valuation, with a Price/Sales ratio of 20.78X, significantly above the sector averages of 6.44X and 5.89X [20] - Despite a year-to-date share price increase of 73.7%, outperforming the broader sector's 32% appreciation, concerns remain about the justification of its premium valuation [21][23]

Core Insights - The Trade Desk (TTD) is a digital advertising company that has seen significant stock price increases in 2024 [1] Company Overview - The Trade Desk operates in the digital advertising sector, which is experiencing growth [1] Stock Performance - The stock prices referenced were from the afternoon of December 17, 2024, indicating a positive market response [1] - The video discussing the company was published on December 19, 2024, suggesting ongoing interest in TTD's performance [1]

The Trade Desk is not for the faint of heart.This has been a tremendous year for The Trade Desk (TTD -5.25%) as the stock returned 77% year to date, continuing its market-beating performance since 2023.But for those who have missed the ride over the last two years, is now a good time to buy the tech company's stock? The Trade Desk has been firing on all cylindersThe Trade Desk has been one of the few companies that could consistently deliver outsize growth for nearly a decade. It has been growing at a high ...

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.Shares of this digital-advertising platform operator have returned +6.1% over the past month versus the Zacks S&P 500 composite's +3.8% change. The Zacks Internet - Services industry, to which The Trade Desk belongs, has gained 3.1% over this period. Now the key question is: Where could the stock be headed in the near ...