Trade Desk (TTD) AI Stock Analysis

• Market Cap: $26.85B
• Dividend Yield: N/A
• Average Volume (3M): 12.13M
• Price to Earnings (P/E): 63.1
• Beta (1Y): 1.96
• Revenue Growth: 25.63%
• EPS Growth: 118.49%
• Country: US
• Employees: 3,522
• Sector: Technology
• Sector Strength: 40
• Industry: Software - Application
• EPS (TTM): 0.78
• Shares Outstanding: 452,425,870
• 10 Day Avg. Volume: 11,475,546
• 30 Day Avg. Volume: 12,133,410
• PEG Ratio: 0.53
• Price to Book (P/B): N/A
• Price to Sales (P/S): 11.43
• Price to Cash Flow (P/CF): 35.00
• P/FCF Ratio: 31.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $107.68
• Price Target Upside: 118.55% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 27

The Trade Desk's overall stock score reflects its strong financial performance and positive corporate developments, offset by technical weaknesses and a high valuation. While the company is fundamentally solid, current technical indicators suggest caution. The strategic appointments and share buyback program may enhance future growth and stability.

Positive Factors

Industry Position

TTD remains the expert's top demand-side platform (DSP) despite challenges and increased competition.

Market Opportunities

The Trade Desk is well-positioned in high growth areas of digital advertising with large total addressable markets, particularly in connected TV and retail media.

Partnerships

NFLX's potential partnership with TTD's UID2.0 is seen as a catalyst for more programmatic transactions in CTV advertising.

Negative Factors

Competition

TTD is facing more competition, particularly from AMZN, which has made steady improvements and become more competitive.

Macroeconomic Risks

Consensus revenue growth for 2025 is expected to be below initial estimates due to potential macroeconomic challenges.

Market Overhang

A key overhang for The Trade Desk’s stock price remains the threat of increasing competition from the Amazon DSP and Prime Video inventory.

Trade Desk Business Overview & Revenue Model

Company Description

The Trade Desk, Inc. operates as a technology company in the digital advertising industry, providing a robust platform that enables ad buyers to create, manage, and optimize digital advertising campaigns across various channels, including display, video, audio, and social media. The company's platform leverages a data-driven approach to help advertisers reach their target audiences more effectively and efficiently, utilizing advanced machine learning and artificial intelligence tools.

How the Company Makes Money

The Trade Desk generates revenue primarily through its demand-side platform (DSP), which allows advertisers, agencies, and other buyers to purchase and manage digital advertising inventory in real-time. The company's revenue model is predominantly based on a percentage of the advertising spend that flows through its platform, known as a take rate. Additionally, The Trade Desk may earn fees from data and analytics services that enhance ad targeting and performance tracking. Key partnerships with major media companies and data providers also contribute to its revenue, enabling access to premium ad inventory and valuable audience insights.

Trade Desk Financial Statement Overview

Summary

Trade Desk exhibits exceptional financial health with strong revenue and profit growth, efficient capital structure, and impressive cash flow generation. The company is well-positioned in the Software industry, demonstrating robust operational performance and financial stability, which augurs well for future growth and shareholder value creation.

Income Statement

Trade Desk has demonstrated robust revenue growth with a 25.62% increase year-over-year from 2023 to 2024, accompanied by a strong gross profit margin of 80.69% in 2024. The net profit margin improved significantly to 16.08%, reflecting enhanced operational efficiency. The EBIT and EBITDA margins stand at a healthy 17.47%, indicating strong core profitability. These metrics showcase solid growth and profitability, despite intense industry competition.

Balance Sheet

The company maintains a sound financial position with a low debt-to-equity ratio of 0.11, indicating conservative leverage. The return on equity (ROE) improved to 13.33%, highlighting effective utilization of equity to generate profit. The equity ratio is 48.24%, suggesting a balanced capital structure. Overall, Trade Desk's balance sheet reflects stability and low financial risk.

Cash Flow

Trade Desk achieved a notable 18.01% growth in free cash flow from 2023 to 2024, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 1.88, showcasing efficient conversion of income into cash. Additionally, the free cash flow to net income ratio of 1.63 underscores robust cash flow relative to earnings. These metrics reflect excellent liquidity and cash management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.44B	1.95B	1.58B	1.20B	836.03M
	Gross Profit
1.97B	1.58B	1.30B	974.91M	657.22M
	EBIT
427.17M	200.48M	113.65M	124.82M	144.21M
	EBITDA
514.66M	280.90M	168.08M	124.82M	144.21M
	Net Income Common Stockholders
393.08M	178.94M	53.38M	137.76M	242.32M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.92B	1.38B	1.45B	958.78M	624.04M
	Total Assets
6.11B	4.89B	4.38B	3.58B	2.75B
	Total Debt
312.21M	235.89M	260.96M	284.60M	292.43M
	Net Debt
-1.06B	-659.24M	-769.55M	-469.56M	-144.92M
	Total Liabilities
3.16B	2.72B	2.27B	2.05B	1.74B
	Stockholders Equity
2.95B	2.16B	2.12B	1.53B	1.01B
Cash Flow		Free Cash Flow
641.22M	543.30M	456.85M	318.54M	324.95M
	Operating Cash Flow
739.46M	598.32M	548.73M	378.51M	405.07M
	Investing Cash Flow
-157.51M	-107.59M	-304.37M	-93.64M	-143.27M
	Financing Cash Flow
-107.61M	-626.11M	31.99M	31.93M	44.68M

Trade Desk Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 49.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TTD, the sentiment is Negative. The current price of 49.27 is below the 20-day moving average (MA) of 54.16, below the 50-day MA of 73.16, and below the 200-day MA of 102.64, indicating a bearish trend. The MACD of -6.75 indicates Negative momentum. The RSI at 35.95 is Neutral, neither overbought nor oversold. The STOCH value of 29.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TTD.

Trade Desk Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PUBM	67 Neutral	$435.78M	38.71	4.36%	―	9.08%	43.58%
TTD	66 Neutral	$26.85B	63.13	15.37%	―	25.63%	118.49%
ZI	66 Neutral	$2.90B	93.56	1.53%	―	-2.03%	-68.59%
DV	66 Neutral	$2.22B	41.35	5.21%	―	14.72%	-22.00%
GRND	64 Neutral	$3.73B	―	-966.61%	―	32.71%	-131.68%
DSP	62 Neutral	$893.60M	416.47	3.87%	―	29.74%	―
Sector *	57 Neutral	$20.24B	9.51	-13.28%	2.72%	5.43%	-24.54%

Trade Desk Corporate Events

Trade Desk Announces Board Changes with Wells’ Departure

On April 3, 2025, David Wells announced he would not seek re-election to The Trade Desk‘s board of directors at the 2025 annual meeting, ending his service since December 2015. The board plans to appoint Kathryn E. Falberg as chairperson of the audit committee, and upon Wells’s departure, the board will reduce its size from eight to seven directors.

Spark’s Take on TTD Stock

According to Spark, TipRanks’ AI Analyst, TTD is a Neutral.

The Trade Desk’s overall stock score reflects its strong financial performance and positive corporate developments, offset by technical weaknesses and a high valuation. While the company is fundamentally solid, current technical indicators suggest caution. The strategic appointments and share buyback program may enhance future growth and stability.

To see Spark’s full report on TTD stock, click here.

The Trade Desk Appoints Vivek Kundra as COO

On March 12, 2025, The Trade Desk announced the appointment of Vivek Kundra as Chief Operating Officer, effective March 31, 2025. Kundra, who brings extensive experience from roles at project44, Sprinklr, and Salesforce, will oversee global operations to drive operational excellence. His appointment aligns with The Trade Desk’s growth objectives, as the company continues to expand its reach in the digital advertising industry. Kundra’s leadership is expected to enhance operational rigor and accelerate the company’s growth, leveraging his expertise in cloud computing and strategic industry expansions.

Trade Desk Appoints New Director, Expands Board

On February 14, 2025, The Trade Desk’s Board of Directors appointed Alexander Kayyal as a Class I director, expanding the Board to eight members. Kayyal will participate in the company’s non-employee director compensation program, including equity grants and indemnification agreements. Additionally, the company announced a significant share repurchase program authorized in January 2025, increasing the total potential repurchases to $1 billion. The company’s financial performance in 2024 showed significant growth with a 26% revenue increase year over year, reaching $2.4 billion, despite disappointing results in the fourth quarter. The Trade Desk also continues to innovate and expand its offerings, including acquiring Sincera and supporting industry initiatives like Unified ID 2.0, positioning itself as a leader in the digital advertising space.