The Trade Desk soars 18.60% on strong Q1 earnings

The Trade Desk (TTD) surged 18.60%, marking its sixth consecutive day of gains, with a cumulative increase of 33.89% over the past six days. The share price reached its highest level since February 2025, with an intraday gain of 26.49%.

The strategy of buying TTD shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 9.83% annualized gain. This approach benefited from TTD's strong growth and recovery periods, though it underperformed during periods of market volatility and range-bound movements.

The recent surge in The Trade Desk's stock price can be attributed to its strong first-quarter 2025 financial results. The company reported a significant 25% year-over-year revenue growth, reaching $616 million, and earnings per share increased by 67% to $0.33, surpassing analysts' expectations of $0.25 per share on $575.3 million in sales. Despite increased macroeconomic volatility, CEO Jeff Green assured continued market outperformance, highlighting the retention of over 95% of customers for eleven consecutive years. Although GAAP earnings were lower, reflecting a non-GAAP profit of $0.33 and a GAAP profit of $0.10, the positive market sentiment and impressive quarterly results contributed to the stock's upward trajectory.

In addition to its financial performance, The Trade Desk has been actively expanding its partnerships and product offerings. The company recently announced a strategic partnership with a major media company, which is expected to enhance its advertising capabilities and drive further growth. This partnership, along with other strategic initiatives, has bolstered investor confidence in the company's long-term prospects.

Furthermore, The Trade Desk has been investing in research and development to stay ahead of the competition. The company's innovative technology and data-driven approach have positioned it as a leader in the programmatic advertising space. This focus on innovation has not only attracted new customers but also helped retain existing ones, contributing to the company's strong financial performance and stock price appreciation.