The Trade Desk Stock Is Down 50%. Is It a Buy for 2025?
On Feb. 12, The Trade Desk (NASDAQ: TTD) announced its fourth-quarter results, and by some measures, it was another strong report, with revenue up 22% year over year. But the company's revenue of $741 million also fell short of the $758 million analysts expected, and the stock plunged in response. It's currently down 43% from where shares traded ahead of the report, and down 50% from the peak it hit in December. "While we are proud of these accomplishments, we are disappointed that we fell short of our own expectations in the fourth quarter," CEO Jeff Green said.The Trade Desk's long-term growth prospects as a digital ad-buying platform are still intact. The company is well positioned to benefit from growing ad spending on connected TV platforms, which is expected to be a huge opportunity in the coming years. But investors may want to hold off buying shares, as the stock's valuation still looks expensive even after the post-earnings haircut.Continue reading
On Feb. 12, The Trade Desk (NASDAQ: TTD) announced its fourth-quarter results, and by some measures, it was another strong report, with revenue up 22% year over year. But the company's revenue of $741 million also fell short of the $758 million analysts expected, and the stock plunged in response. It's currently down 43% from where shares traded ahead of the report, and down 50% from the peak it hit in December.
"While we are proud of these accomplishments, we are disappointed that we fell short of our own expectations in the fourth quarter," CEO Jeff Green said.
The Trade Desk's long-term growth prospects as a digital ad-buying platform are still intact. The company is well positioned to benefit from growing ad spending on connected TV platforms, which is expected to be a huge opportunity in the coming years. But investors may want to hold off buying shares, as the stock's valuation still looks expensive even after the post-earnings haircut.
