Trade desk stock price: MOONSHOT or CRASH?  

Trade desk stock price has become a debatable topic among stock analysts. Analysts are bullish on the price surge. Most have predicted that the trade desk will be a profitable stock investment. 

But the question is, should you rely on an analyst’s bullish report? 

The trade desk is a programmatic advertising solution-based company. If they want a giant online ads platform, they must beat Google Ads, Meta Business Suite & Adobe Advertising Cloud.

As a stock investor, you may ask yourself: Will Trade Desk Stock a MOONSHOT or CRASH? Or Can Trade Desk Stock Defy the Market Odds?

Don’t worry; this thorough blog article will give you the maximum solution to your query. You may learn some vital analysis that will help you estimate the trade desk stock price.

Let’s start with the following.

Key takeaways:

• The trade desk is a good investment for long-term profit.
• The trade desk has to plan strategically to be a giant online ads company.
• The trade desk’s high stock price could create an ad tech startup threat. So, the trading desk must balance its valuation.
• The trade desk has a good industry trend because online ad customers are growing daily.
• The trade desk stock could be a lousy investment for traders because it needs more time to mature.
• From the perspective of growth potential, the trade desk stock is likely to be a medium stock with some possibility of skyrocketing its price.

When does ttd report earnings?

The Trade Desk could report earnings between February 13th & 21st for 2024. However, this is an assumption based on historical reporting data & the actual date could vary.

Below is the table detailing past earnings reports of The Trade Desk.

The trade desk market cap?

The trade desk market cap shows a bullish performance. That means the stock has a positive metric to be a profitable stock.

Below, the table shows details on the trade desk market cap. (The market cap is according to my article writing date)

The trade desk stock prediction?

Most of the stock analysts are bullish on trade desk stock prices. Target prices fluctuate slightly, but all the analysts agree that the trade desk stock will be profitable.

Let’s see what analysts predict on trade desk stock prices from 2024 to 2030.

Trade desk earnings estimates?

The trade desk earning shows a positive growth pattern, which indicates a growing market expansion signal. The trade desk has enough liquid money to meet emergency cash needs, which indirectly suggests less possibility of bankruptcy. They also balance over valuation stock price & make Debt-to-Capital equal, corresponding to previous years.

Let’s see the details of the trade desk accounting report.    

The trade desk stock price chart prediction?

The stock started with a $11.45 price at the end of 2018; it reached $25.25, nearly a 120% growth. Then, it took an upward trend & went to $73.32 at the closing of 2020. Though the price fluctuates, it shows positive sentiment across two years. It peaked at $107.79 in November but surprisingly fell to $63.41 in August 2021, which is 41% lower. Though it has lost 41% of its price, overall, it shows a positive trend. The stock price showed an unprecedented hike at $78.94 at the opening of 2022 & second lowest down at $44.83 at the end of 2022. But stock again started to go upwards & finally reached $70.63 at the end of 2023. 

The stock hit its maximum price three times 

18 December, 2020=$95.15

19 November, 2021=$107.79

11 August, 2022=74.49  

27 July, 2023=90.95

Where will TTD stock be in 5 years?

The five-year price graph shows a promising growth of The Trade Desk stock. If The Trade Desk focuses on market growth & tries to balance high valuation, it will be a profitable investment. 

In short, The Trade Desk stock could be suitable for long-term investors, but it could be a bad investment if you are not risk-tolerant. The trade desk would be a medium-growth stock after five years.

Share projection?

The projection data for The Trade Desk (TTD) stock shows a probability of 65% going above & 35% going down from the stock price of $79 in the next 12 months. If you buy ttd stock today, it has a 65% chance to go higher than $79 & 35% risk the store will be below $79.

This projection suggests that the trade desk stock has solid financial performance & also a growing market acceptance. That means the industry has a positive pattern & if it continues, it will be a profitable stock. Also, Price projection data of the trade desk stock suggest that investing in the long-term would be more beneficial than the short-term. 

EPS forecast of the trade desk stock?

The EPS forecast table of the trade desk stock indicates a minimum of $1.16 to a maximum of $4.41 with a positive sign. The forecast represents a compound annual growth rate (CAGR) trend.

Let’s understand it from a mathematical perspective.

CAGR shows increasing earnings, which is a good sign for stock prices because it shows overall profitability. The EPS of ttd stock indicates a parallel speedy growth over the years. This growth suggests significant return potential from The Trade Desk stock.

Is the trade desk stock a good buy?

Yes, the trade desk stock is a good buy for long-term investment. It could be risky if you want short-term profit because the share needs more time to mature. 

My analysis has found that the trade desk stock will be medium-growth. That means, if you invest $1, that dramatically be not $10.

Below, I have discussed in detail why the trade desk would be a medium growth share. 

• The trade desk customers

The trade desk doesn’t disclose specific customer growth data. However, the trade desk has diverse customers, including America, Europe & Asia. 

Below, the table details the trade desk customers.

If you see customer details, you will see that the trading desk does not have a specific group of customers. Instead, it has diverse clients. This customer table suggests that the trade desk market is growing, which is a positive factor for stock price. 

But there is also a question regarding stock price: if the trade desk has a solid customer base, why do they not disclose it publicly as Palantir does? It is also possible that the trade desk will publish their customer details publicly in the upcoming days. So, my analysis regarding the trade desk stock price will be neutral here. 

• Growing number of employees

The trade desk employees have increased from 846 to 2,300, a 171% growth from 2019 to 2023. This 171% indicates a long-term positive trend, i.e., five years, which signals they have enough planning & support to expand their business. So, the trade desk has a positive market trend. 

• Industry trends in The USA

The programmatic advertising market is a growing industry with positive trends.

You can see from the graph that in the last two years it has boomed significantly. That means this ad industry is gaining customer adoptability daily, which is a good sign for the trade desk stock. The programmatic advertising industry captured a market of about 11.40% from 2022 to 2023 & Statista forecasted that the programmatic advertising market size would be $53.7 billion at the end of 2024.  

The trade desk has a positive industry trend, indirectly suggesting that the stock would be a profitable investment.

• Global industry trend

You can see that the graph shows a continuous upward trend from the start. Digital ads spending started at $187.83 billion in 2017 & reached $557.56 at the end of 2023, indicating positive trends.

Then, online ads’ expenses show a sequential growth from 2024 to 2026, representing a 10% annual compound growth rate. ( data is collected from Statista)

So, the above analysis predicts the following things.

• Business shows more interest all over the world in programmatic advertising. They use it to promote business and target customers based on demography. This interest suggests that the trade desk can expand the market from its existing one.
• The company adopted technology-based ads faster than traditional ads. This growing acceptability signals future growth potential. So, we can infer that the trade desk products will not be obsolete after two or three years. 
• Peoples like programmatic ads & this interest are growing daily. So, gradually, online ads are becoming mainstream & also increase demand. Overall, this accelerating demand will help the trade desk to expand its market size.  

• The trade desk competition

The trade desk has many competitors, but below are the main ones that could threaten the trade desk.

The trade desk has to focus on its competitors’ weaknesses. If they have enough talent & dedicated leadership, then there is a chance to fill the gap. That means the trade desk will only be a giant programmatic advertising company if it becomes strong on competitors’ weaknesses.

The trade desk also has to emphasize some indirect competitors, such as Traditional media companies & similar ad tech startups. 

· Newspapers, TV networks, and radio also offer programmatic advertising services that can capture some market of the trade desk. So, the trade desk has to focus on price & better solutions to stop traditional media companies. 

· A growing industry trend can influence many new ad tech startups, which could offer similar solutions with lower prices & more innovative ways. Initially, it will not be a problem for the trade desk, but the latter could be a challenge. So, the trade desk must have some cutting-edge solution plan.  

• Trade desk Performance during inflation

The global programmatic advertising market declined 12% in the 2008 to 2009 financial crisis. This decline signals that programmatic advertising companies will perform poorly during the economic crisis. The present data of the trade desk shows mixed performance, i.e., it has demand, but customers are looking for an effective solution. 

However, COVID-19 forced everyone to be at home; companies were no option without online trading. You could not take this as a success indicator for the trade desk because you will invest stock for at least three years. 

Then, the Russia & Ukraine war created another economic crisis. Economic sanctions & oil crises create unprecedented inflation. So, companies are looking to reduce operating costs to survive. 

The trade desk provides digital ad solutions; therefore, the industry depends on Russia or is affected by the war and may look for an alternative platform if the trade desk increases the price too much. So, the trade desk needs to be more cautious to tackle this growing threat to business.

Concluding Thought

What will be the exact price of the trade desk stock after five years or ten years? No one can answer this question even Cathie Wood or Warren Buffet can’t. 

The fundamental analysis gives us an idea of what will happen in the upcoming time with the stock price. Why am I saying this? Because stock investment is associated with risk & uncertainty. Fundamental analysis suggests how to lower stock risk and how stock prices could surge. Anytime uncertainty can arise due to management conflict, war, competitors, or economic sanctions. We can’t control this type of uncertainty. 

Overall, my analysis has found that the trade desk stock will fluctuate in the short term, but in a long time, it will manage price fluctuation & become a medium-growth stock.  

Frequently Asked Questions (FAQ)

The trade desk IPO?

The Trade Desk stock went public on the NASDAQ on September 22, 2016. Though its IPO was $18 per share, the trade desk raised $576 million & became a $1.1 Billion company.

The trade desk stock symbol?

The trade desk stock symbol is TTD. The IPO listing on the NASDAQ stock exchange under the ticker symbol TTD helps the trade desk become one of the best companies in technology and advertising.

Disclaimer

The information provided in this article is author’s view & only for educational purposes. Also, the intention of this article is not hurting stock analyst. This is not a sponsor post & not an investment advice. Do your research before making any important financial decision. Therefore, FinanceIdeas.org will not be liable for your financial loss.