Latest news with #TheTradeDesk
Yahoo
a day ago
- 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
a day ago
- 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
Yahoo
3 days ago
- Business
- Yahoo
This Magnificent Tech Stock Is Soaring After Joining the S&P 500. Should You Buy It?
Key Points The Trade Desk just joined the S&P 500 index, and the news that it would gave the stock a shot in the arm. The programmatic advertising company's share price jumped impressively in the past three months, bringing its valuation to premium levels. The Trade Desk, however, has the potential to justify its valuation and sustain its impressive rally. These 10 stocks could mint the next wave of millionaires › Programmatic digital advertising provider The Trade Desk (NASDAQ: TTD) is the latest company to join the S&P 500 index, doing so on July 18. The addition explains why shares of the company shot up an impressive 6% on the day following the announcement that it would join. The spike isn't surprising; The Trade Desk's entry into the S&P 500 is a testament to the company's solid profitability and liquidity in the past four quarters. Moreover, the addition to the index has led to an increase in demand for a stock from passive investors and index funds because of a phenomenon called the "index effect." It is worth noting that The Trade Desk was selected to join the S&P 500 over popular names such as Robinhood Markets, AppLovin, Interactive Brokers, and others. It will be replacing Ansys in the index (Ansys was acquired by Synopsys). However, investors may now be wondering if it makes sense to buy The Trade Desk stock as it has shot up more than 59% in the space of just three months as of this writing. Let's see if it is a good idea to buy The Trade Desk following its inclusion in the S&P 500. The Trade Desk's valuation makes it an expensive stock to buy right now The Trade Desk's recent rally has brought the stock's price-to-earnings (P/E) ratio to 97 as of this writing. That's nearly triple the tech-laden Nasdaq-100 index's average earnings multiple. The forward earnings multiple of 45, though far lower than the trailing multiple, is still on the expensive side. Investors, therefore, will have to pay a huge premium if they are looking to buy the stock right now. For a company that's expected to deliver an increase of just 7% in earnings this year, The Trade Desk seems too richly valued to buy right now. But then, growth-oriented investors will do well to note that the company is operating in a fast-growing market that benefits from the rapid adoption of artificial intelligence (AI) tools. A huge addressable opportunity could help the stock maintain its momentum According to one estimate, the programmatic advertising market that The Trade Desk serves could grow by 10x between 2024 and 2033, generating a whopping $236 billion in revenue at the end of the forecast period. The Trade Desk has generated just under $2.6 billion in revenue in the past 12 months, indicating that it still has massive room for growth over the next decade. An important point to note here is that The Trade Desk's growth is better than that of large competitors such as Meta Platforms and Alphabet. The company reported a 25% year-over-year increase in revenue in Q1, which was well above the 16% growth in Meta's advertising business during the same quarter. Alphabet's Google advertising business, on the other hand, grew at a much slower pace of 8% in Q1. Of course, The Trade Desk is a much smaller company right now, but its robust growth suggests that it is gradually making its presence felt in the multibillion-dollar digital ad market. The company's AI tools are playing a central role in helping it register a robust growth rate, with two-thirds of its customer base currently using its Kokai programmatic advertising platform. The company points out that Kokai analyzes 17 million real-time opportunities every second to help advertisers and brands buy relevant ad inventory that can be served across different channels such as video, audio, display, social, connected TVs, and others. The data-driven advertising enables The Trade Desk to optimize campaigns so that its customers can generate higher returns on the ad dollars they spend. The Trade Desk claims that its clients who are using Kokai have seen a 42% drop in cost per unique reach, a metric that refers to the amount spent to reach a unique individual through an advertisement. Not surprisingly, the company says that its "active contract negotiations are at all-time highs." All this indicates that The Trade Desk's growth could pick up pace in the future. Consensus estimates, for instance, project its bottom-line growth rate to nearly triple to 20% in 2026 as compared to this year. The Trade Desk has the potential to maintain an upward earnings growth trajectory, as it expects the cost savings achieved by advertisers using its platform to be reinvested back into advertising campaigns. As such, don't be surprised to see an uptick in The Trade Desk's earnings growth in the long run, suggesting that the company has the ability to justify its valuation. That's why this tech stock could still attract growth investors even after the handsome gains it has clocked lately. 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 , and there may not be another chance like this anytime soon.*Stock Advisor returns as of July 14, 2025 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. Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, AppLovin, Interactive Brokers Group, Meta Platforms, Synopsys, and The Trade Desk. The Motley Fool recommends the following options: long January 2027 $175 calls on Interactive Brokers Group and short January 2027 $185 calls on Interactive Brokers Group. The Motley Fool has a disclosure policy. This Magnificent Tech Stock Is Soaring After Joining the S&P 500. Should You Buy It? was originally published by The Motley Fool
Yahoo
4 days ago
- Business
- Yahoo
Possible Bearish Signals With Trade Desk Insiders Disposing Stock
Over the past year, many The Trade Desk, Inc. (NASDAQ:TTD) insiders sold a significant stake in the company which may have piqued investors' interest. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period. While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. The Last 12 Months Of Insider Transactions At Trade Desk The Independent Director, Kathryn Falberg, made the biggest insider sale in the last 12 months. That single transaction was for US$15m worth of shares at a price of US$98.17 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$80.21). So it may not tell us anything about how insiders feel about the current share price. Insiders in Trade Desk didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction! See our latest analysis for Trade Desk If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar). Insider Ownership I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Trade Desk insiders own 9.3% of the company, worth about US$3.7b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders. So What Do The Trade Desk Insider Transactions Indicate? There haven't been any insider transactions in the last three months -- that doesn't mean much. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Trade Desk insider transactions don't fill us with confidence. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Trade Desk. Of course Trade Desk may not be the best stock to buy. So you may wish to see this free collection of high quality companies. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
4 days ago
- Business
- Yahoo
The Trade Desk, Inc. (TTD)'s Got 'A Really Good Product,' Says Jim Cramer
We recently published . The Trade Desk, Inc. (NASDAQ:TTD) is one of the stocks Jim Cramer recently discussed. The Trade Desk, Inc. (NASDAQ:TTD) is an American technology company that enables businesses to run digital advertising campaigns. In today's era of video streaming platforms outpacing traditional media when it comes to user growth, the firm has managed to establish a strong foothold for itself in an emerging industry. Yet, despite its business model, The Trade Desk, Inc. (NASDAQ:TTD)'s shares have lost 30% year-to-date on the back of a massive 33% selloff in February. The stock sank after the firm's fourth quarter revenue missed analyst estimates and raised questions about its growth prospects. Cramer discussed the share price performance: '[On S&P inclusion] Oh good. You know look, Jeff had one change in his algo, I'm talking about Jeff Green, he missed the quarter. And he's been paying penitence. There's a guy by the way like, the conference call was like listen I screwed up, I screwed up. . .he wore the hare suit. Now drop the hare suit, play your strong suit. He's got a really good product.' A large array of computer screens and tech equipment representing the technology company's self-service cloud-based platform. Earlier, the CNBC TV host commented on The Trade Desk, Inc. (NASDAQ:TTD)'s CEO and the firm's 'mojo': 'Oh, you know, look, I should have told people to pull the trigger after that one unfortunate quarter that Jeff Green had, but I've got to tell you, I want Jeff on. Jeff has been elusive of late. I think he's got the right—he's got the mojo. Jeff's got the mojo now. And mojo's being a technical term for really good stock.' While we acknowledge the potential of TTD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. 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
