24th July 2025
********** General Advice Only **********
The Trade Desk (NASDAQ: TTD) – Buy Recommendation
The Trade Desk is a leading technology company specializing in digital advertising. Their cloud-based, self-service platform lets advertisers and agencies plan and run data-driven campaigns across channels like video, audio, display, connected TV, and more. By providing advanced measurement and optimization tools, The Trade Desk empowers brands to reach the right audiences efficiently, whether on desktop, mobile, or streaming devices. Headquartered in Ventura, California, the company was founded in 2009 and now operates globally
Positives
Strong Financials: The Trade Desk is showing powerful growth, with 25% year-over-year revenue increases and an overall “GREAT” financial health score, according to InvestingPro analysis. Their $39.3 billion market valuation speaks to investor confidence.
Analyst Confidence: Multiple firms have recently raised their price targets (ranging from $95 to $115), and most maintain a Buy or Outperform rating, citing strong earnings momentum and positive market trends.
Innovative Platform: The company’s Kokai platform is receiving positive feedback from ad agencies, suggesting it’s gaining meaningful traction in the advertising world.
S&P 500 Inclusion: Joining the S&P 500 on July 18 is a major milestone, likely attracting more institutional investment and raising the company’s profile.
Competitive Position: Concerns about competition, especially from Amazon’s DSP, seem overblown for now. The Trade Desk appears well-positioned to serve a broad range of advertisers seeking sophisticated tools and objective measurement.
Risks
Valuation: With strong momentum comes a higher valuation. Any shortfall in growth expectations could hit the stock price.
Market Competition: While currently comfortable, giants like Amazon and Google are always evolving their advertising platforms.
- Economic Sensitivity: Advertising is often cyclical—macroeconomic downturns could dampen campaign budgets.
Trade Plan
Entry: Buy up to $86.00
Stop Loss: $69
Initial Profit Target: $115
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Disclaimer: The recommendation given is general advice only. It does not take into account your personal objectives, financial situation, or specific needs. This information should not be your sole resource when making such decisions. We strongly recommend you to seek the advice of financial, taxation, and legal professionals before finalising any investment decisions.