Stock Analysis | The Trade Desk Outlook - Technical Weakness and Mixed Analyst Sentiment

Market Snapshot

Headline Takeaway: The Trade Desk (TTD) is underperforming with a recent price drop of 2.12% and weak technical signals. Our internal diagnostic score for technical analysis stands at 2.69 (0-10), indicating the stock is best avoided for now.

News Highlights

No recent news items were reported, so the market remains in a relatively calm state with no immediate catalysts driving investor sentiment. This lack of news could contribute to the weak price trend observed over the last five days.

Analyst Views & Fundamentals

• Average Rating Score: The simple mean analyst rating is 3.80, indicating a generally neutral stance from analysts.
• Weighted Rating Score: The performance-weighted rating is 3.15, which is slightly more cautious.
• Rating Consistency: Analyst opinions are mixed, with 7 "Neutral," 4 "Strong Buy," and 4 "Buy" ratings. There is no consensus among institutions.
• Rating vs. Price Trend: The current price is falling, but the overall analyst sentiment is relatively balanced. This mismatch could signal uncertainty in the stock's near-term direction.
• Key Fundamental Factors and Model Scores:
  • Price-to-Cash Flow (PCF): 16.83, internal diagnostic score: 2.
  • Net Operating Cash Flow / Operating Revenue (%): 34.84%, internal diagnostic score: 3.
  • Net Profit-to-Market Value (Profit-MV): 0.53%, internal diagnostic score: 1.
  • Quick Ratio: 2.40, internal diagnostic score: 2.
  • Non-Current Assets / Total Assets (%): 15.17%, internal diagnostic score: 0.
  • Net Operating Cash Flow / Total Liabilities (%): 0.14%, internal diagnostic score: 1.
  • Cash Flow from Operating Activities (CFOA): 2.77%, internal diagnostic score: 2.
  • Net Profit Margin (NPM): 12.99%, internal diagnostic score: 3.
  • Cash-to-Market Value (Cash-MV): 0.70%, internal diagnostic score: 2.

Money-Flow Trends

The fund-flow analysis shows a mixed picture:

• Small Investors: 49.19% of the flow is positive, but the trend is negative.
• Medium Investors: 49.62% inflow ratio and a positive trend.
• Large Investors: 49.22% inflow ratio, but the trend is negative.
• Extra-Large Investors: 55.58% inflow ratio with a positive trend.
• Overall Inflow Ratio: 53.39%, with a positive overall trend and strong block investor activity (55.03% inflow ratio).

Our internal diagnostic fund-flow score is 8.21 (0-10), labeled "excellent," suggesting institutional confidence despite mixed small-cap activity.

Key Technical Signals

The technical picture for The Trade Desk is not encouraging:

• WR Overbought: Internal diagnostic score: 3.46 – a weak indicator of strength, suggesting the stock may be overbought but not strongly.
• WR Oversold: Internal diagnostic score: 2.03 – suggests a weak bearish signal with low confidence.
• Bullish Engulfing: Internal diagnostic score: 1.05 – a very weak signal that has historically resulted in a 36.36% win rate.
• MACD Golden Cross: Internal diagnostic score: 4.21 – a moderate signal that historically hasn’t performed well.

Recent Chart Patterns:

• 2025-08-22: Bullish Engulfing pattern
• 2025-08-28: WR Overbought signal
• 2025-08-27: Another Bullish Engulfing pattern
• 2025-09-04: WR Oversold signal
• 2025-08-29: MACD Golden Cross signal

These mixed signals suggest that the market is in a weak state, and investors should be cautious of potential downside.

Key Insights: The technical side is weak, and it is suggested to avoid the stock due to a clear dominance of bearish indicators (3 bearish vs 0 bullish). Recent technical signals are scarce, and the market is relatively calm.

Conclusion

With an internal diagnostic technical score of 2.69, The Trade Desk is showing signs of weakness. Mixed analyst ratings (3.80 simple average, 3.15 performance-weighted) suggest a lack of consensus, and recent price declines are not aligned with analyst expectations. Given the bearish technical indicators and low confidence in chart signals, investors may want to consider waiting for a clearer trend or better entry point before committing capital to TTD.