Is The Trade Desk Inc. (TTD) The Best 52-Week Low Stock To Buy Now According to Short Sellers?

As the market continues to fluctuate, investors are always on the lookout for undervalued stocks that have the potential to rebound. One such stock that has caught the attention of many is The Trade Desk Inc. (TTD), a global technology company that specializes in a software platform used by digital ad buyers to purchase data-driven digital advertising campaigns across various ad formats and devices. With a 52-week low of $71.61 and a current price of $72.06, TTD appears to be an attractive option for investors. However, the question remains: is TTD the best 52-week low stock to buy now according to short sellers?



To answer this question, it is essential to examine the primary reasons behind TTD's recent decline in stock price and the role that short sellers play in this downward trend. The recent decline in TTD's stock price can be attributed to several factors, including missed revenue guidance, management execution issues, short sellers' activities, and market sentiment shifts. In its Q4 2024 earnings report, TTD missed revenue guidance and experienced a slower-than-expected rollout of its next-generation AI platform, Kokai. This led to a significant sell-off, with the stock price dropping by nearly 32% after the earnings release on February 12, 2025.



Short sellers have been actively targeting TTD's stock, likely due to the company's high valuation and recent underperformance. As of February 2025, short interest in TTD was around 15.5% of the float, indicating that a significant number of investors are betting against the company's stock. This high short interest can put downward pressure on the stock price, as short sellers may be driving the stock down to profit from their short positions.

However, it is essential to consider that short selling alone does not cause a stock's price to decline; rather, it is a result of the underlying fundamentals and market conditions. In TTD's case, the company's recent underperformance and high valuation have likely contributed to the increased short interest. As a result, investors may be presented with an opportunity to buy TTD at a discounted price, assuming that the company's fundamentals remain strong and the market sentiment shifts in its favor.



In conclusion, while TTD's recent decline in stock price and high short interest may present an attractive entry point for investors, it is crucial to evaluate the company's fundamentals and market sentiment before making a decision. The recent underperformance and high valuation may indicate that TTD is a risky investment, but the company's strong fundamentals and potential for growth could make it an attractive option for long-term investors. Ultimately, the decision to buy TTD at its 52-week low depends on the investor's risk tolerance and investment horizon.