Is TTD worth purchasing?

**The Trade Desk (TTD) presents a promising investment opportunity, but it is not without its risks and challenges.** Here's a detailed analysis to help you decide:

1. **Recent Performance and Market Sentiment**:
- TTD's stock price has surged by 10.09% on July 15, 2025, following its inclusion in the S&P 500 index. This move reflects positive market sentiment, particularly as it replaces ANSYS in the index.
- The stock's inclusion in the S&P 500 is seen as a catalyst for growth, potentially increasing visibility and attracting more institutional investors.
2. **Analyst Ratings and Price Targets**:
- CFRA has raised its price target to $110 from $82, indicating confidence in TTD's growth potential.
- Citi has increased its price target to $90, highlighting the company's strong market position based on recent media buyer surveys.
- BMO Capital has reiterated its Outperform rating with a $115 price target, emphasizing the potential of the new Kokai platform and the company's solid financial position.
3. **Technical Indicators**:
- TTD's technical indicators show a bullish signal with a MACD of 1.71, indicating a potential upward trend.
- However, the RSI of 82.84 suggests that the stock might be overbought, which could lead to a pullback in the near term.
- The KDJ of 57.07 indicates that the stock is neither overbought nor oversold, suggesting a balanced momentum.

|code|Ticker|Name|Date|RSI|KDJ|MACD|market_code|
|---|---|---|---|---|---|---|---|
|TTD|TTD.O|The Trade Desk|20250717|82.8354|57.0670|1.7100|185|

4. **Fundamental Analysis**:
- TTD's net fund flow is positive at $3.31 billion, with a net fund flow (block order) of $3.3 billion, indicating strong investor interest.
- The company's inclusion in the S&P 500 is seen as a validation of its programmatic advertising model and its sustained growth.
5. **Challenges and Risks**:
- TTD faces challenges related to recent execution issues and changes in engineering product processes.
- The company's growth expectations are sensitive to macroeconomic conditions, particularly rising macroeconomic uncertainty and trade tensions.
6. **Valuation**:
- TTD's current price of $81.44 is close to its 60-day moving average of $69.61, indicating a potential support level.
- The company's strong fundamentals and growth prospects are supported by its financial health score and revenue growth.

In conclusion, while TTD shows strong growth potential and positive market momentum, investors should be aware of its current valuation and potential risks. The decision to purchase TTD should be based on a thorough consideration of your investment goals, risk tolerance, and the current market conditions.