Trade Desk (TTD) AI Stock Analysis

• Market Cap: $18.02B
• Dividend Yield: N/A
• Average Volume (3M): 14.05M
• Price to Earnings (P/E): 42.5
• Beta (1Y): 1.24
• Revenue Growth: 20.82%
• EPS Growth: 41.82%
• Country: US
• Employees: 3,522
• Sector: Communication Services
• Sector Strength: 97
• Industry: Software - Application
• EPS (TTM): 0.23
• Shares Outstanding: 440,318,940
• 10 Day Avg. Volume: 18,305,458
• 30 Day Avg. Volume: 14,054,513
• PEG Ratio: 1.26
• Price to Book (P/B): 19.56
• Price to Sales (P/S): 23.60
• P/FCF Ratio: 91.23
• Enterprise Value/Market Cap: 1.35
• Enterprise Value/Revenue: 8.72
• Enterprise Value/Gross Profit: 11.07
• Enterprise Value/Ebitda: 37.22
• 1Y Price Target: $62.80
• Price Target Upside: 68.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 23
• EPS Forecast (FY): 0.86
• Revenue Forecast (FY): $2.89B

• Rating: 70 Outperform
• Price Target: $43.00 ▲(15.31% Upside)

Trade Desk's overall stock score is driven by strong financial performance and positive earnings call insights, indicating robust growth potential. However, technical indicators suggest a bearish trend, and the high P/E ratio reflects premium valuation, which may pose risks if growth expectations are not met.

Positive Factors

Revenue Growth

Sustained revenue growth indicates strong demand for Trade Desk's platform, highlighting its competitive position and ability to capture market share.

Product Innovation

Continuous product innovation enhances Trade Desk's platform capabilities, attracting more clients and strengthening its competitive edge.

Financial Strength

Strong financial health with significant cash reserves and no debt provides Trade Desk with flexibility to invest in growth opportunities.

Negative Factors

Macro-Economic Concerns

Macro-economic pressures on key clients could impact ad spending, potentially slowing Trade Desk's revenue growth in affected sectors.

Competitive Challenges

Increased competition from major players could pressure Trade Desk's pricing and market share, affecting long-term profitability.

Decline in Free Cash Flow Growth

A decline in free cash flow growth may signal challenges in cash flow management, potentially limiting future investment capabilities.

Trade Desk Business Overview & Revenue Model

Company Description

Trade Desk (TTD) is a global technology company that specializes in digital advertising and programmatic ad buying. Founded in 2009, the company provides a platform that enables advertisers to purchase and manage digital advertising campaigns across various channels, including display, video, audio, and social media. Trade Desk operates within the advertising technology sector, offering tools and solutions that leverage data and analytics to optimize ad spending and improve campaign performance.

How the Company Makes Money

Trade Desk primarily generates revenue through a software-as-a-service (SaaS) model, charging advertisers fees based on their advertising spend on the platform. The company earns money by taking a percentage of the total media spend that advertisers allocate for their campaigns, known as the 'take rate.' Key revenue streams include fees from demand-side platform (DSP) services, which allow advertisers to access and buy inventory from various ad exchanges. Additionally, Trade Desk has developed partnerships with various data providers, enabling advertisers to leverage audience data for targeted campaigns, further enhancing the platform's value and driving additional revenue. Their focus on data-driven advertising and continuous innovation in ad technology also contribute to their earnings by attracting a diverse range of clients across multiple industries.

Trade Desk Financial Statement Overview

Summary

Trade Desk demonstrates strong financial health with consistent revenue growth and profitability. The balance sheet is solid with low leverage, and cash flow generation remains robust despite recent declines in free cash flow growth. The company is well-positioned in the competitive software application industry, though it should monitor cost pressures and cash flow trends closely.

Income Statement

Trade Desk shows strong revenue growth with a TTM increase of 4.16% and consistent profitability with a net profit margin of 15.72%. The gross profit margin remains robust at 78.81%, indicating efficient cost management. However, the slight decline in gross profit margin from previous years suggests rising costs or competitive pressures.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.14, indicating low leverage and financial stability. Return on equity is solid at 16.00%, reflecting effective use of equity capital. However, the equity ratio is moderate, suggesting room for improvement in asset management.

Cash Flow

Operating cash flow is strong, with a ratio of 0.29 to net income, indicating good cash generation relative to earnings. However, free cash flow growth has declined by 8.58% in the TTM, which could signal potential challenges in cash flow management or increased capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.79B	2.44B	1.95B	1.58B	1.20B	836.03M
Gross Profit	2.20B	1.97B	1.58B	1.30B	974.91M	657.22M
EBITDA	653.99M	514.66M	280.90M	168.08M	167.04M	172.84M
Net Income	438.58M	393.08M	178.94M	53.38M	137.76M	242.32M
Balance Sheet
Total Assets	5.94B	6.11B	4.89B	4.38B	3.58B	2.75B
Cash, Cash Equivalents and Short-Term Investments	1.45B	1.92B	1.38B	1.45B	958.78M	624.04M
Total Debt	375.98M	312.21M	235.89M	260.96M	284.60M	292.43M
Total Liabilities	3.34B	3.16B	2.72B	2.27B	2.05B	1.74B
Stockholders Equity	2.60B	2.95B	2.16B	2.12B	1.53B	1.01B
Cash Flow
Free Cash Flow	687.54M	632.39M	543.30M	456.85M	318.54M	324.95M
Operating Cash Flow	880.53M	739.46M	598.32M	548.73M	378.51M	405.07M
Investing Cash Flow	-474.11M	-157.51M	-107.59M	-304.37M	-93.64M	-143.27M
Financing Cash Flow	-974.76M	-107.61M	-626.11M	31.99M	31.93M	44.68M

Trade Desk Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 37.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TTD, the sentiment is Negative. The current price of 37.29 is below the 20-day moving average (MA) of 38.39, below the 50-day MA of 43.79, and below the 200-day MA of 57.71, indicating a bearish trend. The MACD of -1.77 indicates Negative momentum. The RSI at 34.79 is Neutral, neither overbought nor oversold. The STOCH value of 37.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TTD.

Trade Desk Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DOCU	71 Outperform	$14.02B	49.29	15.22%	―	8.45%	-69.85%
TTD	70 Outperform	$18.02B	42.54	16.78%	―	20.82%	41.82%
DDOG	69 Neutral	$49.23B	480.49	3.52%	―	26.63%	-46.13%
MGNI	68 Neutral	$2.36B	43.61	7.56%	―	6.27%	226.16%
DSP	65 Neutral	$734.22M	450.00	4.45%	―	22.97%	49.49%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
PUBM	59 Neutral	$409.84M	-48.99	-2.85%	―	-0.68%	-146.14%

Trade Desk Corporate Events

Trade Desk Receives Nasdaq Reprimand for Rule Violation

On December 9, 2025, The Trade Desk, Inc. received a reprimand from Nasdaq for violating voting rights rules due to an amendment to its articles of incorporation. The amendment, approved on September 16, 2025, extended the conversion date of Class B to Class A shares. Despite the reprimand, Nasdaq closed the matter with no further action, and the company’s stock listing remains unaffected.

Trade Desk Reports Strong Q3 Revenue Growth

On November 6, 2025, The Trade Desk announced its third-quarter financial results, reporting an 18% year-over-year revenue growth to $739 million, driven by innovations in its Kokai platform. The company also revealed a $500 million increase in its share repurchase program, highlighting its strong financial position and commitment to returning value to shareholders. The Trade Desk’s strategic initiatives, including new product launches and partnerships, reinforce its market leadership and potential for future growth.