Latest news with #TheTradeDesk
Globe and Mail
15 hours ago
- Business
- Globe and Mail
Meet the Newest Growth Stock Joining the S&P 500. It's Up 73% Since the Start of May, but It's Not Too Late to Buy.
Key Points The S&P 500 is getting a shake-up with the addition of a new fintech stock. While the stock's growth has slowed considerably over the last few years, management plans to increase marketing to grow. The business should exhibit strong economies of scale, leading to high earnings growth over the long run. 10 stocks we like better than Block › While many think of the S&P 500 as an index of unchanging companies that have stood the test of time, the truth is the index is constantly in flux. The committee in charge of determining the 500 companies included in the index is constantly evaluating its members and ensuring they maintain a set of standards required for inclusion. If a company becomes unprofitable or declines in value too much, the committee will replace it with a more deserving company when it reconstitutes the index every quarter Another instance when the committee will add new stocks to the index is when one of the companies gets acquired, delisting their stock from the market. Such was the case earlier in July, which led to The Trade Desk 's inclusion in the index. Just a week later, the committee added Block (NYSE: XYZ) to replace Hess following the latter's acquisition by Chevron. Despite a big jump in Block's stock price on the news, building on a considerable increase in its share price since the start of May, investors can still buy shares of the company at a fair price. Here's what you need to know. Refocusing on profitable growth After incredibly strong adoption for both of its financial products on the consumer and seller sides during the pandemic, Block has experienced a bit of a hangover. In fact, it's seen a marked deceleration in its gross profits (a more fitting metric than revenue for the business) over the last year. Its first-quarter gross profit growth came in at just 9% -- the fourth straight quarter of decelerating gross profits, down from 22% growth in the year-ago period. The challenge isn't isolated to Square (its seller service) or Cash App (its consumer service). Both have seen considerable slowdowns. Management has plans to turn things around in the second half of the year. It's rolling out Cash App Borrow nationwide, based on its acquisition of Afterpay. It expects to be able to increase loan limits and reduce defaults using its wealth of consumer data and machine learning algorithms. It's also planning to increase its marketing spend, focusing on niche customers like teens and their families. Meanwhile, it continues to roll out new features and products for Square to grow revenue and improve retention. Despite the slowdown in its top line, Block has managed to improve its profitability, boosting its earnings per share (EPS). Adjusted operating income grew 28% year over year in Q1 on the back of margin expansion. While the step-up in marketing for Cash App will weigh on its margins, it should help reaccelerate its top line. And that's still a big opportunity for Block. Management estimates the total addressable market for Square is $130 billion and $75 billion for Cash App. While it's focused on small segments of each market, it's still underpenetrated with just $9 billion of gross profit over the past year. While increased marketing spend will pressure profitability in the near term, the nature of Block's core businesses benefit from scale with minimal marginal operating costs. That should produce strong earnings growth over the long run. A fair price for a fintech leader With big opportunity ahead for the company, investors interested in fintech stocks should consider adding Block to their portfolio. As of this writing, the stock trades for just under 30 times forward adjusted earnings estimates. As the company reaccelerates its top-line growth to double digits over the next few quarters, it should put itself on a path to sustain that pace over the long run. As long as it maintains cost discipline, it should see strong margin expansion over time as it scales. That should lead to strong EPS growth, justifying the current price. On top of the fintech business, investors also get access to a Bitcoin business. The company generates a small amount of revenue from the spread on Bitcoin sales through Cash App. It also owns Bitkey, a self-custody Bitcoin wallet, and Proto, a suite of Bitcoin mining products and services. Management expects the latter to contribute to gross profit starting this year. Additionally, it holds Bitcoin on its balance sheet. While Bitcoin represents a tiny piece of Block's business today, it could provide strong upside if there's broader adoption of the cryptocurrency. In the meantime, the core fintech business looks poised to bounce back from its recent downturn. While the increase in stock price reflects growing investor confidence in the turnaround efforts, there's still time for investors to buy the stock at the current price. Should you invest $1,000 in Block right now? Before you buy stock in Block, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Block wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 28, 2025
Globe and Mail
6 days ago
- Business
- Globe and Mail
The Trade Desk Announces Date of Second Quarter 2025 Financial Results and Conference Call
The Trade Desk, Inc. (NASDAQ: TTD), a provider of a global technology platform for buyers of advertising, today announced that it will release financial results for the second quarter ended June 30, 2025 after the market closes on Thursday, August 7, 2025. The Trade Desk will host a webcast and conference call to discuss second quarter financial results at 2:00 P.M. Pacific Time. Webcast and Conference Call Details When: August 7, 2025 at 2:00 P.M. Pacific Time (5:00 P.M. Eastern Time). Webcast: A live webcast of the call can be accessed from the Investor Relations section of The Trade Desk's website at Following the call, a replay will be available on the company's website. Dial-in: To access the call via telephone in North America, please dial 888-506-0062. For callers outside the United States, please dial 1-973-528-0011. Participants should reference the conference call ID code '760543' after dialing in. Audio replay: An audio replay of the call will be available beginning about two hours after the call. To listen to the replay in the United States, please dial 877-481-4010 (replay code: 52725). Outside the United States, please dial 1-919-882-2331 (replay code: 52725). The audio replay will be available via telephone until August 14, 2025. About The Trade Desk The Trade Desk™ is a technology company that empowers buyers of advertising. Through its self-service, cloud-based platform, ad buyers can create, manage, and optimize digital advertising campaigns across ad formats and devices. Integrations with major data, inventory, and publisher partners ensure maximum reach and decisioning capabilities, and enterprise APIs enable custom development on top of the platform. Headquartered in Ventura, CA, The Trade Desk has offices across North America, Europe, and Asia Pacific. To learn more, visit or follow us on Facebook, Twitter, LinkedIn and YouTube.
Business Wire
6 days ago
- Business
- Business Wire
The Trade Desk Announces Date of Second Quarter 2025 Financial Results and Conference Call
LOS ANGELES--(BUSINESS WIRE)--The Trade Desk, Inc. (NASDAQ: TTD), a provider of a global technology platform for buyers of advertising, today announced that it will release financial results for the second quarter ended June 30, 2025 after the market closes on Thursday, August 7, 2025. The Trade Desk will host a webcast and conference call to discuss second quarter financial results at 2:00 P.M. Pacific Time. Webcast and Conference Call Details When: August 7, 2025 at 2:00 P.M. Pacific Time (5:00 P.M. Eastern Time). Webcast: A live webcast of the call can be accessed from the Investor Relations section of The Trade Desk's website at Following the call, a replay will be available on the company's website. Dial-in: To access the call via telephone in North America, please dial 888-506-0062. For callers outside the United States, please dial 1-973-528-0011. Participants should reference the conference call ID code '760543' after dialing in. Audio replay: An audio replay of the call will be available beginning about two hours after the call. To listen to the replay in the United States, please dial 877-481-4010 (replay code: 52725). Outside the United States, please dial 1-919-882-2331 (replay code: 52725). The audio replay will be available via telephone until August 14, 2025. About The Trade Desk The Trade Desk™ is a technology company that empowers buyers of advertising. Through its self-service, cloud-based platform, ad buyers can create, manage, and optimize digital advertising campaigns across ad formats and devices. Integrations with major data, inventory, and publisher partners ensure maximum reach and decisioning capabilities, and enterprise APIs enable custom development on top of the platform. Headquartered in Ventura, CA, The Trade Desk has offices across North America, Europe, and Asia Pacific. To learn more, visit or follow us on Facebook, Twitter, LinkedIn and YouTube.
Yahoo
22-07-2025
- Business
- Yahoo
Meet the Newest Growth Stock Joining the S&P 500. It's Up 80% in 3 Months, and It's Still a Buy Right Now, According to Wall Street.
Key Points Companies must meet certain criteria to qualify for inclusion in the S&P 500. The Trade Desk is gaining market share in a fast-growing industry. Yet, its stock trades at a fair value even after climbing 80% since April. These 10 stocks could mint the next wave of millionaires › The S&P 500 is one of the most important indexes in global financial markets. It tracks 500 of the biggest U.S.-based companies, but there are more requirements than just a large market capitalization. S&P 500 eligibility also requires a company to produce a profit in the most recent quarter and the trailing-12-month period. A stock also must have sufficient liquidity. The committee at S&P Global updates the index every quarter, but there are some special events that can force it to update it on irregular intervals -- for example, when a company in the index gets acquired or goes private. With one fewer publicly traded stock, the committee needs to add a new one to make up for it. That happened recently after Synopsys closed its acquisition of Ansys on July 17. Replacing Ansys is The Trade Desk (NASDAQ: TTD). And even after climbing 80% from its lows in April, as of this writing, Wall Street still thinks there's room for the stock to run. A wild ride into the S&P 500 The Trade Desk's path to inclusion in the S&P 500 didn't come without a few missteps since its 2016 IPO. One of its biggest came recently when the company missed its own revenue outlook for the fourth quarter. That was its first miss since going public. The revenue miss was caused by operational challenges in transitioning its customers to its new artificial intelligence (AI) platform for buying digital advertising, dubbed Kokai. The new platform helps marketers optimize their bids on digital ad placements along with improving targeting to help businesses get the most out of their marketing budgets. Kokai also comes with improved measurement capabilities in the era of App Tracking Transparency, which prevents apps from tracking user behavior outside their own website. The push to transition customers moved slowly, and management decided to make some major personnel changes to try to accelerate the shift in the fourth quarter. That led to the shortfall in revenue in the fourth quarter, which sent the stock sinking from its late-2024 highs. At one point, the stock was down 67%. But management's move proved worthwhile in the first quarter. It's now ahead of schedule on its plan to transition its entire customer base to Kokai before year-end, with about two-thirds of clients on the platform. More importantly, its focus on transitioning its biggest customers means the bulk of spend is running through Kokai. The market rewarded The Trade Desk's stock on those strong results. The stock got another shot in the arm on the news that it would be included in the S&P 500, but the share price still remains about 40% below its all-time high. Many analysts still think there's room for The Trade Desk to recover from here, and the long-term trend favors the ad platform. Where does Wall Street see the stock going? As The Trade Desk has seen its stock price recover, Wall Street analysts remain as bullish as ever. Three months ago, 30 of the 39 analysts covering the stock rated it as a buy or its equivalent. Today, it has the same number of buy ratings. Since the start of July, the stock has received several price target increases. The highest comes from UBS analysts, which put a $105 price target on the stock on July 16 after it was announced the company would join the S&P 500. That implies upside of 29% from the price as of this writing. The long-term outlook for The Trade Desk is even better. The demand-side platform separates itself from other digital ad platforms because it's not owned by one of the giant walled gardens that dominate the industry: Alphabet's Google, Meta Platforms, or Amazon. Instead of focusing on its own properties, The Trade Desk looks to offer ad placements around the web, in streaming video services, podcasts, and other digital media, regardless of who owns the content. As more businesses develop their own ad-supported streaming services and new podcasts enter the market every day, that's enabled it to grow its share of digital advertising over time. Still, The Trade Desk accounts for a tiny percentage of the total digital advertising market. Customers spent about $12 billion on its platform last year. Management estimates the entire ad industry takes in $1 trillion of ad spending. Huge swaths of the market for The Trade Desk to tap into over the long run remain. Management is looking to capture more of that market by bringing in new inventory at lower prices for marketers. Its OpenPath service allows publishers to work directly with The Trade Desk to fill inventory, cutting out the middlemen and leaving more of the economics for publishers and marketers. That gives it a chance to compete on price against Google, Meta, and Amazon, which sell access to their own inventory. The Trade Desk has even started to look at building its own inventory with its Ventura streaming TV operating system. A successful transition to Kokai and continued improvements in its capabilities to improve ad efficacy for marketers should support the growth of ad spending through The Trade Desk. The stock currently trades for an enterprise value-to-forward EBITDA (earnings before interest, taxes, depreciation, and amortization) ratio of 34. But with strong revenue growth and margin expansion, that price looks like a fair value for the stock right now. Most of the analysts following the stock still think it's heading higher from here. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $444,463!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $40,337!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $665,092!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of July 21, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Adam Levy has positions in Alphabet, Amazon, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, S&P Global, Synopsys, and The Trade Desk. The Motley Fool recommends Ansys. The Motley Fool has a disclosure policy. Meet the Newest Growth Stock Joining the S&P 500. It's Up 80% in 3 Months, and It's Still a Buy Right Now, According to Wall Street. was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
22-07-2025
- Business
- Globe and Mail
2 Stocks to Buy on the Dip and Hold for 10 Years
Key Points The Trade Desk's recent revenue miss has likely given investors an excellent buying opportunity. Target's troubles have juiced its dividend yield and made its P/E ratio arguably too low to ignore. These 10 stocks could mint the next wave of millionaires › Price fluctuations have always been part of stock investing. Numerous factors, including data and emotion, can drive the price of a stock, particularly over short and medium-term time frames. That's why it makes sense to invest for the long term. Over the course of years, companies that maintain a growth trajectory tend to see their stock prices rise. Even when a stock struggles due to short-term factors, a stock of a company buoyed by sustained expansion will typically rise over the long term. Knowing that, it may pay to buy two particular stocks amid recent declines. And I'd suggest holding for 10 years, or more. 1. The Trade Desk One stock that has experienced extreme fluctuations in recent months is The Trade Desk (NASDAQ: TTD). The buy-side digital advertising stock began 2025 on a high note, having reached its all-time high in December 2024. The growth of the digital ad industry and the growing popularity of its platform have helped drive stock price growth during its nearly nine-year history. Unfortunately, the stock plummeted after the company reported missing its own revenue guidance for the fourth quarter of 2024. The losses continued after that announcement, and when it reached its "Liberation Day"-fueled low, it had fallen by approximately two-thirds over a four-month period. However, after a rebound, it is now down by just over 40% from the December high. Moreover, trends appear favorable for the digital advertising industry, as Grand View Research predicts a 15% compound annual growth rate (CAGR) for the industry through 2030. This should play into The Trade Desk's hands as companies and ad agencies turn to the platform's technology to buy ads on the platforms most likely to drive the highest returns for an advertising dollar. Additionally, short-term trends have improved. In the first quarter of 2025, The Trade Desk returned to its previous history of beating in-house revenue estimates at a time when analysts forecast 17% revenue growth during 2025 and 18% the following year. Indeed, its P/E ratio of about 100 may deter some investors. Nonetheless, the forward P/E ratio of 41 -- based on earnings estimates -- may make its current price more palatable. Finally, if you're holding for 10 years or more, the growth runway tends to make these ratios less relevant over time; the Trade Desk could return to its all-time highs and beyond in the foreseeable future. 2. Target Target (NYSE: TGT) stock has declined by more than 60% from its 2021 high. Early in the decade, Target bought too much merchandise, resulting in an inventory overhang that remains unresolved to this day. Moreover, at the same time, Target alienated a portion of its customer base by embracing diversity, equity, and inclusion efforts (DEI). When it reversed those efforts in 2025, another part of its customer base became upset with the company. That factor, along with an uncertain economy, has dampened sales. In the first quarter of fiscal 2025 (ended May 3), net sales fell 3% yearly to just under $24 billion. This included a 4% decline in comparable-store sales, as foot traffic for the retailer decreased. Additionally, the contract for CEO Brian Cornell is set to expire in September. Since he is in his 60s and has been CEO since 2014, I think Target is likely to have a new CEO in the near future, adding to uncertainty about the company's direction. However, the negativity may be overdone. For one thing, over 75% of Americans live within 10 miles of a Target, giving it more reach than any retailer except Walmart. The lower stock price has some unexpected benefits for new buyers. For one, it increases the appeal of its dividend, which has risen for 54 straight years. The payout, which now pays shareholders $4.56 annually, offers a dividend yield of 4.5% at the current stock price, far above the S&P 500 average of 1.2%. Since a dividend cut could dampen investor confidence, the payout hikes are likely to continue. Secondly, the stock has fallen to a price-to-earnings ratio of 11. This makes it far cheaper than archrival Walmart at 41 times earnings. While Target's troubles are likely to persist for the foreseeable future, the valuation implies that the pessimism is overdone, positioning the stock for a recovery that can take it higher over the next 10 years. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $447,134!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $40,090!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $652,133!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon. See the 3 stocks » *Stock Advisor returns as of July 21, 2025
