New Trade for November 29th, 2023

The Trade Desk: A Tech Stock Poised for a Strong Comeback

The Trade Desk (NASDAQ: TTD), known for its innovative programmatic advertising platform, has recently experienced a significant drop in stock price following its third-quarter earnings report. Despite a 25% year-over-year increase in Q3 revenue to $493 million and a 27% rise in adjusted earnings, the company’s cautious Q4 guidance led to a 17% decline in its stock.

The company’s Q4 revenue forecast of at least $580 million, though an 18% year-over-year increase, fell short of the $610 million consensus estimate. This cautious stance, influenced by macroeconomic uncertainties and industry-specific headwinds, has led to a temporary setback in investor confidence.

However, this pullback presents a lucrative opportunity for long-term investors. The Trade Desk is projected to finish 2023 with $1.92 billion in revenue, a 22% increase from the previous year. This growth rate outpaces the global digital ad spending growth of 8.4% and highlights The Trade Desk’s dominance in the rapidly expanding programmatic advertising market.

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