All-In on The Trade Desk After 43% Drop – Here’s Why

Listen up, folks! I’ve been watching The Trade Desk (TTD) closely, and let me tell you, this stock is a screaming buy after its 43% drop. You heard it right – 43%! That’s a massive decline, but it’s also a massive opportunity. Let me break it down for you.

First things first, The Trade Desk is the largest independent demand-side platform (DSP) in the ad tech world. They help advertisers buy digital ads across various formats and devices. And they’ve been doing it exceptionally well – until recently. But let’s not get ahead of ourselves.



The stock has taken a beating, dropping from a 52-week high of $141.53 to $56.31. That’s a 60% decline! But here’s the thing: The Trade Desk has a strong financial foundation. They’ve got $1.92 billion in cash and only $312 million in debt. That’s a net cash position of $1.61 billion – or $3.24 per share. This kind of liquidity is a lifesaver in volatile markets.

Now, let’s talk about growth. The Trade Desk’s revenue grew 25.6% year-over-year to $2.44 billion. That’s more than four times the S&P 500’s growth rate of 5.2%. And their 3-year average revenue growth is 26.9%, compared to the S&P 500’s 6.3%. That’s some serious growth, folks!

But what about profitability? The Trade Desk’s operating margin is 17.5%, and they generated $739 million in operating cash flow over the past 12 months. That’s a cash-to-assets ratio of 31.4%, far exceeding the S&P 500’s 14.8%. This company is printing money, and that’s exactly what you want to see.

Now, let’s address the elephant in the room: The Trade Desk missed its Q4 revenue guidance by $15 million. But here’s the thing: one bad quarter doesn’t define a company. Especially when that company has a track record like The Trade Desk. They’ve had 33 consecutive quarters of meeting or exceeding expectations. One miss doesn’t change that.

And let’s not forget about the Kokai platform rollout. Sure, it’s been bumpy, but every new product has its growing pains. The Trade Desk is working through them, and they’ll come out stronger on the other side. Trust me, I’ve seen this story before.

Now, let’s talk about valuation. The Trade Desk trades at a P/S ratio of 14.2 and a P/E ratio of 47.0. That’s high, but it’s also a reflection of their growth potential. And with a 12-month price target of $116.87, that’s a 156% upside from its current price. That’s right, folks – 156%!

So, why am I all-in on The Trade Desk? Because they have a strong financial foundation, a track record of growth, and a leading position in the ad tech world. And because they’re trading at a discount right now. This is a no-brainer, folks. Don’t miss out on this opportunity.

But remember, I’m not telling you to go all-in on The Trade Desk. I’m telling you to do your own research, to understand the risks, and to make an informed decision. This is your money, and you need to be smart about it.

So, what are you waiting for? Get in on The Trade Desk while you still can. This stock is a winner, and it’s only going to go up from here. Trust me, you don’t want to miss out on this one.