Core Viewpoint - The Trade Desk (NASDAQ: TTD) has experienced an 81% decline from its peak, yet analysts believe the stock is significantly undervalued, with a median target price of $50 per share indicating an 85% upside from its current price of $27 [1]. Group 1: Company Overview - The Trade Desk operates a demand-side platform (DSP) that assists media buyers in planning, measuring, and optimizing data-driven advertising campaigns across digital channels [4]. - The latest version of its DSP, named Kokai, utilizes artificial intelligence (AI) to manage budgets, customize bids, and dynamically target audiences [4]. Group 2: Investment Thesis - The investment thesis for The Trade Desk is based on its independent business model, which does not involve owning media content, thus avoiding biases in ad spending [5]. - This independence allows The Trade Desk to foster better data sharing with publishers, enhancing the effectiveness of its measurement tools across the open internet [6]. Group 3: Market Position - The Trade Desk's objectivity is a significant advantage for advertising buyers, making it the most popular DSP for the open internet [7]. - The company has a strong presence in connected TV (CTV) advertising and off-site retail advertising, which are among the fastest-growing segments in the digital advertising market [7]. Group 4: Competitive Landscape - The emergence of generative AI tools is altering consumer engagement with the internet, leading to a predicted slowdown in open internet ad spending growth from approximately 25% in 2024 to about 5% by 2028 [8]. - The Trade Desk charges higher fees, typically between 15% to 20% of ad spending, compared to competitors like Amazon, which charges less than 10%, and AppLovin, which primarily earns revenue based on performance [8].

Company Performance - The Trade Desk (TTD) shares closed at $27.23, reflecting a -3.2% change from the previous day's closing price, underperforming the S&P 500's daily loss of 0.01% [1] - Over the last month, TTD's shares have decreased by 24.26%, significantly lagging behind the Computer and Technology sector's loss of 1.54% and the S&P 500's loss of 0.28% [1] Upcoming Earnings - The Trade Desk is set to release its earnings report on February 25, 2026, with an expected EPS of $0.59, unchanged from the prior-year quarter [2] - Revenue is forecasted to be $841.87 million, indicating a 13.61% growth compared to the same quarter last year [2] Full Year Estimates - Analysts expect TTD to report earnings of $1.78 per share and revenue of $2.89 billion for the full year, representing changes of +7.23% and +18.26%, respectively, from the previous year [3] Analyst Estimates and Confidence - Recent modifications to analyst estimates for TTD indicate the dynamic nature of near-term business trends, with positive revisions reflecting analysts' confidence in the company's performance and profit potential [4] Valuation Metrics - TTD currently has a Forward P/E ratio of 13.42, which is lower than the industry average Forward P/E of 15.58, suggesting a valuation discount [6] - The company has a PEG ratio of 0.66, compared to the average PEG ratio of 1.8 for the Internet - Services industry, indicating a more favorable valuation relative to growth expectations [7] Industry Ranking - The Internet - Services industry, which includes TTD, has a Zacks Industry Rank of 159, placing it in the bottom 36% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1, highlighting the importance of industry ranking in investment decisions [8]

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Core Insights - The Trade Desk (TTD) has experienced a significant decline in stock price, dropping 26.7% over the past month, reflecting investor concerns about its performance in the digital ad tech space [1][7] - The broader Zacks Internet Services industry has also faced challenges, with a 4% decline, while the Computer & Technology sector and S&P 500 have lost 2.9% and 0.9%, respectively, indicating a widespread downturn in the digital advertising ecosystem [4] Company-Specific Challenges - TTD's recent sell-off is attributed to rising costs, slowing revenue growth, macroeconomic volatility, and increasing competition [6][8] - Total operating costs (excluding stock-based compensation) surged 17% year over year to $457 million, driven by investments in enhancing platform capabilities [8] - The company faces macro-driven ad spend caution, which could pressure revenue growth due to reduced programmatic demand amid higher interest rates and geopolitical instability [9] Competitive Landscape - TTD's strongest long-term growth driver, Connected TV (CTV), is becoming increasingly competitive, with rivals like Amazon expanding their demand-side platform (DSP) business [10] - Competition from major players such as Meta Platforms, Apple, Google, and Amazon, as well as smaller companies like Magnite and PubMatic, is intensifying in the CTV and retail media spaces [10] - Regulatory changes, including the deprecation of cookies and tightening data-privacy laws, present ongoing challenges for TTD [11] Long-Term Catalysts - Despite current challenges, TTD has several long-term growth catalysts, including the rise of CTV, expanding retail media networks, and the adoption of its AI-powered platform, Kokai, which is used by 85% of clients [14] - Kokai has demonstrated significant performance improvements, delivering 26% better cost per acquisition, 58% better cost per unique reach, and a 94% better click-through rate compared to its previous platform [14] - The acceleration of retail media is driven by demand for measurable outcomes, with TTD's platform integrating retail data with identity solutions for precise targeting [16] Valuation Metrics - TTD's stock is currently trading at a price/book multiple of 5.03X, compared to the industry's 7.84X, indicating a relative undervaluation [18] - Competitors such as Amazon, Magnite, and PubMatic are trading at multiples of 5.47X, 2.01X, and 1.23X, respectively [19]

Company Overview - The Trade Desk operates a buy-side ad platform that optimizes ad placements across various digital channels, including websites, podcasts, and connected TV [6] - The company has faced increased competition, particularly from Amazon, which has a growing advertising segment that offers high ROI for advertisers [8] Financial Performance - The Trade Desk's revenue increased by 18% last quarter, which, while slower than previous growth rates, still outpaces the market's average annual return of 10% [9] - For 2026, Wall Street analysts project a revenue growth of 16%, indicating continued market-beating performance [9] Valuation Metrics - The Trade Desk's stock is currently trading at a forward P/E ratio of 13, significantly lower than the S&P 500's forward P/E of 22.2 [11] - This presents a unique investment opportunity for growth investors, as it combines double-digit growth potential with a substantial discount to the broader market [11] Market Position - The advertising market is shifting towards programmatic advertising, which is gaining market share from traditional advertising methods [6] - Despite competitive pressures, The Trade Desk remains well-positioned to capitalize on this trend and is considered a strong investment opportunity at its current price [4][11]

Core Insights - The Trade Desk has experienced a significant decline, with its stock down nearly 80% from all-time highs, despite a remarkable 900% increase over the past decade [2][4] - The stock is currently viewed as undervalued, trading for less than 15 times forward earnings, presenting a potential buying opportunity [8][10] Company Performance - The Trade Desk's revenue growth rate reached its lowest level in Q3, outside of a COVID-19-affected quarter, indicating a slowdown in growth [4] - Despite the slowdown, the company still achieved an 18% growth rate, which is considered market-beating, with Wall Street projecting a 16% growth for 2026 [6] Market Position - The Trade Desk operates a buy-side ad platform that has partnerships across various digital platforms, but faces increasing competition, particularly from Amazon, which has taken market share as clients move ad placements in-house [6][4] - The company's gross margin stands at 78.81%, reflecting its operational efficiency despite the challenges faced [7]

Trade Desk Inc (NASDAQ:TTD) is one of the 13 Best Revenue Growth Stocks to Buy Right Now. On February 2, Cathie Wood’s ARK ETF divested a significant portion of its holdings in Trade Desk Inc (TTD), offloading 1,931,578 shares for nearly $58.6 million. Earlier in the month, Wells Fargo maintained an Equal Weight rating on the stock with a price target of $42. In a research note, Wells Fargo said the sudden resignation of the company’s chief financial officer is a sign of “continued fundamental and narrat ...

The Trade Desk, Inc. (NASDAQ:TTD) stands out as one of Cathie Wood’s 10 stock picks with huge upside potential. Leadership Transition Tempers Analyst Sentiment on Trade Desk (TTD) As of February 2, 2026, The Trade Desk, Inc. (NASDAQ:TTD) continues to attract mixed analyst sentiment, with over 50% of analysts covering the stock remaining bullish, with a consensus upside potential of a 79.80%. On January 27, 2026, The Trade Desk, Inc. (NASDAQ:TTD) drew Rosenblatt analyst Barton Crockett’s attention, who l ...

Core Insights - The individual has extensive experience in investment research, having worked in various roles across different investment firms in Toronto for nearly a decade [1] - The journey began in sell-side research at a Canadian bank, followed by positions in a hedge fund, a family office, and wealth management [1] - Achieving CFA and CAIA designations by the age of 25 was a significant milestone in the individual's career [1] Personal Transformation - The individual emphasizes the importance of self-conquest and personal growth before achieving professional success [1] - A significant lifestyle change occurred, with the individual living in a yurt in the boreal forest, highlighting a shift towards simplicity and self-sufficiency [1] - The current lifestyle includes living close to nature, with access to natural resources for water and heat, indicating a profound appreciation for life [1]

Company Overview - The Trade Desk, Inc. (NASDAQ:TTD) is a cloud-based platform that assists advertisers in planning, managing, and measuring digital ad campaigns across various formats and devices [3]. Recent Performance - The Trade Desk's stock was highlighted as the sixth worst performer in the S&P 500, experiencing a significant decline after the announcement of the firing of their new CFO just five months into the role [1]. - The company has transitioned from being a market darling to a chronic underperformer, struggling to adapt to the new AI era, and ended the previous year as the worst performer in the S&P 500, down 68% [3]. Management Changes - The abrupt firing of the CFO has raised concerns about the company's stability and future direction, contributing to the perception that the stock is not worth the risk at this time [1].