Digital advertising platform Trade Desk ends November with 38% gain

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Digital advertising platform The Trade Desk (NASDAQ: TTD) presents potentially constructive training after a big move in November.

After rising sharply, many stocks move sideways as large institutions hold their newly purchased stocks without making big additions. This is exactly what The Trade Desk is currently doing.

The Ventura, Calif., Company offers a cloud-based platform for ad buyers. Company clients can create and manage digital advertising campaigns. Customers can optimize their campaigns on various channels, such as audio, video, integrated apps, social media and others.

The action underwent a fix earlier this year after Google and Apple announced they would no longer allow cookies on their advertising platforms.

However, any young, nimble growth company like The Trade Desk will not just give up and hoist the white flag. The company has developed a proprietary system which it calls Unified ID 2.0.

This new platform uses anonymized data to help advertisers create a portrait of the customer they want to target.

Strong results from the last quarterly report helped the stock come out of a correction that began in January. The stock fell to a structured low of $ 46.71 on May 11, which reset the stock’s base number. It may seem counterintuitive, but these new structural lows may set the stage for new money to come in at a lower valuation. This is true for both value stocks and growth stocks like The Trade Desk.

The stock hovered until August 10 when it attempted a rally but reached resistance at $ 90.

From there, he formed a cup-shaped pattern, which he erased on November 9, the day after the Trade Desk’s third quarter report, which exceeded Wall Street views, according to MarketBeat data.

(A d)

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Top Wall Street Views

The company earned $ 0.18 per share on revenue of $ 301.1 million, year-over-year increases of 38% and 39%, respectively.

Analysts had forecast a profit of $ 0.15 on revenue of $ 283.93 million. The company has beaten profit and sales expectations in each of the past eight quarters.

MarketBeat analysts’ views show a “buy” rating, with a target price of $ 97.63, down 4.24%. This bearish target is not particularly alarming, given that the stock is currently trading just below $ 100 and is holding around 3% above its 21-day moving average.

On the last earnings conference call, CEO Jeff Green provided highlights for the quarter.

  • Video, excluding connected TV, represents nearly 40% of activity, the highest ratio ever recorded.
  • CTV’s growth isn’t just in the US Spending grew faster in Europe, the Middle East and Africa than in any other region
  • In the third quarter, international growth outpaced domestic growth, a trend the company expects to continue in the long term.
  • In August, Walmart launched its demand-side advertising platform, Walmart DSP, in conjunction with The Trade Desk.
  • Unified ID continued its strong industry-wide momentum and reached critical scale in the market.
  • Mobile Trade Desk activity continues to resist. “As we expected, the most recent iOS changes have had no significant impact on our business, and we expect that to remain the case,” said Green.

The fundamental and technical stories of The Trade Desk have diverged for much of this year. Profits and revenues have grown at double to triple digit rates recently, with the sole exception of the second quarter of 2020, when profits were down 10% and revenues were down 13%.

Double-digit growth ahead?

For the full year 2021, analysts expect The Trade Desk to earn $ 0.78 per share, an increase of 13%. Next year, that is expected to rise another 17%, to $ 0.91 per share. These two estimates have been revised upwards recently.

Despite this year’s long correction, the stock is up 29.19% year-to-date, entirely due to a 38% gain in November.

On Wednesday, the action started December with bearish trading, after a larger spread at the open. Continued support above the 21-day average may signal that the stock remains in the buy range.
Digital advertising platform Trade Desk ends November with 38% gain

Should you invest $ 1,000 in Trade Desk right now?

Before you consider the Trade Desk, you’ll want to hear this.

MarketBeat tracks Wall Street’s top-rated and top-performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat identified the five stocks that top analysts quietly whisper to their clients to buy now before the larger market takes hold of… and Trade Desk was not on the list.

While the Trade Desk currently has a “Buy” rating among analysts, top-rated analysts believe these five stocks are better buys.

See the 5 actions here

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