Shares of Trade Desk (TTD) gained in after-hours trading after the ad tech company reported earnings for its second quarter of Fiscal Year 2024. Earnings per share came in at $0.39, which beat analysts’ consensus estimate of $0.36 per share. Sales increased by 26.1% year-over-year, with revenue hitting $585 million. This beat analysts’ expectations by almost $7 million.
Looking forward, management now expects revenue of at least $618 million and adjusted EBITDA of approximately $248 million. For reference, analysts were expecting $605.5 million in revenue along with an adjusted EBITDA of $248.2 million.
Is TTD a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on TTD stock based on 17 Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic below. After an 8% rally in its share price over the past year, the average TTD price target of $106.93 per share implies 21.68% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
Interestingly, when it comes to “smart money,” money managers don’t seem to be all that confident in TTD stock. Indeed, hedge funds decreased their holdings in the stock by 53,800 shares in the past quarter. As a result, they have a negative confidence signal, as indicated by the graphic below.
