Trade Desk (TTD) AI Stock Analysis

• Market Cap: $41.33B
• Dividend Yield: N/A
• Average Volume (3M): 12.07M
• Price to Earnings (P/E): 105.7
• Beta (1Y): 1.71
• Revenue Growth: 25.07%
• EPS Growth: 103.30%
• Country: US
• Employees: 3,522
• Sector: Technology
• Sector Strength: 98
• Industry: Software - Application
• EPS (TTM): 0.10
• Shares Outstanding: 445,649,230
• 10 Day Avg. Volume: 18,525,461
• 30 Day Avg. Volume: 12,065,091
• PEG Ratio: 19.34
• Price to Book (P/B): 14.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 58.43
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 4.08
• Enterprise Value/Gross Profit: 18.81
• Enterprise Value/Ebitda: 21.52
• 1Y Price Target: $93.83
• Price Target Upside: 7.90% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 28

• Rating: 77 Outperform
• Price Target: $92.00 ▲(5.80%Upside)

Trade Desk's overall score is primarily driven by its strong financial performance and positive earnings call, which highlight effective management and strategic growth initiatives. The technical analysis indicates bullish momentum, although the valuation suggests the stock is trading at a premium. Macro concerns are noted but offset by strong operational execution and market positioning.

Positive Factors

Financial Performance

Expect a strong 2Q25 print from TTD and see an attractive setup for another beat-and-raise quarter.

Market Position

Trade Desk remains well-positioned to capture ad spend share in the Open Internet despite emerging competitive fears.

Product Innovation

The new Kokai platform simplifies the ad-buying journey and drives incremental ad spend into Trade Desk over time.

Negative Factors

Competitive Fears

Trade Desk will require consistently strong execution before shares meaningfully expand back to prior levels due to competitive fears from Amazon DSP.

Competitive Threats

Investor concern centers around competitive intensity, primarily Amazon DSP, and potential impact to billings/take rate.

Market Share Loss

Concerns exist that advertisers are shifting budgets from Trade Desk into Amazon's lower-fee DSP, suggesting a loss of market share.

Trade Desk Business Overview & Revenue Model

Company Description

Trade Desk, Inc. operates as a technology company in the United States and internationally. The company operates a self-service cloud-based platform that allows buyers to create, manage, and optimize data-driven digital advertising campaigns across various ad formats and channels, including display, video, audio, native, and social on various devices, such as computers, mobile devices, and connected TV. It also provides data and other value-added services. The company serves advertising agencies and other service providers for advertisers. The Trade Desk, Inc. was incorporated in 2009 and is headquartered in Ventura, California.

How the Company Makes Money

The Trade Desk generates revenue primarily through a usage-based model, where clients pay based on the volume of advertising spend that runs through its platform. This typically involves charging a percentage of the advertising spend as a platform fee. Key revenue streams include fees from programmatic ad buying, data and analytics services, and integration with third-party platforms. The company also benefits from significant partnerships with major digital publishers and media platforms, which enhance its service offerings and expand its reach in the digital advertising ecosystem.

Trade Desk Financial Statement Overview

Summary

Trade Desk demonstrates a strong financial profile with consistent revenue and profit growth, efficient cost management, and a robust balance sheet. The company shows prudent leverage, strong cash flows, and effective equity utilization, indicating a well-managed financial strategy conducive to future growth.

Income Statement

Trade Desk's income statement shows strong growth and profitability. The company has demonstrated solid revenue growth over the years, with a notable increase from the previous year. The gross profit margin remains high, indicating efficient cost management. Net profit margin has improved steadily, showcasing enhanced profitability. Both EBIT and EBITDA margins are healthy, further emphasizing operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a robust equity base. The debt-to-equity ratio is low, indicating prudent leverage management. Return on Equity (ROE) has shown improvement, reflecting effective use of equity capital. The equity ratio indicates a strong asset base funded by shareholder equity, showcasing financial stability.

Cash Flow

Trade Desk's cash flow statement highlights strong cash generation capabilities. The operating cash flow to net income ratio is favorable, indicating efficient conversion of income to cash. Free cash flow growth rate is positive, reflecting healthy cash reserves to support growth initiatives. The free cash flow to net income ratio is robust, underscoring financial flexibility.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.44B	1.95B	1.58B	1.20B	836.03M
Gross Profit	1.97B	1.58B	1.30B	974.91M	657.22M
EBITDA	514.66M	280.90M	168.08M	124.82M	144.21M
Net Income	393.08M	178.94M	53.38M	137.76M	242.32M
Balance Sheet
Total Assets	6.11B	4.89B	4.38B	3.58B	2.75B
Cash, Cash Equivalents and Short-Term Investments	1.92B	1.38B	1.45B	958.78M	624.04M
Total Debt	312.21M	235.89M	260.96M	284.60M	292.43M
Total Liabilities	3.16B	2.72B	2.27B	2.05B	1.74B
Stockholders Equity	2.95B	2.16B	2.12B	1.53B	1.01B
Cash Flow
Free Cash Flow	632.39M	543.30M	456.85M	318.54M	324.95M
Operating Cash Flow	739.46M	598.32M	548.73M	378.51M	405.07M
Investing Cash Flow	-157.51M	-107.59M	-304.37M	-93.64M	-143.27M
Financing Cash Flow	-107.61M	-626.11M	31.99M	31.93M	44.68M

Trade Desk Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 86.96
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 86.96 is above the 20-day moving average (MA) of 80.62, above the 50-day MA of 75.59, and below the 200-day MA of 90.83, indicating a neutral trend. The MACD of 3.80 indicates Negative momentum. The RSI at 67.94 is Neutral, neither overbought nor oversold. The STOCH value of 68.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TTD.

Trade Desk Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DV	78 Outperform	$2.51B	52.49	4.83%	―	15.30%	-22.69%
TTD	77 Outperform	$41.33B	105.69	16.88%	―	25.07%	103.30%
GTM	74 Outperform	$3.56B	88.26	2.23%	―	-3.12%	-37.59%
DSP	73 Outperform	$907.22M	481.73	4.15%	―	30.64%	―
PUBM	67 Neutral	$582.89M	141.63	1.94%	―	3.62%	-53.21%
GRND	58 Neutral	$3.43B	―	-63.52%	―	30.08%	-196.62%
Sector *	57 Neutral	$815.27M	11.36	-16.80%	2.65%	10.29%	-42.67%

Trade Desk Corporate Events

Trade Desk Stockholders Approve Key Governance Proposals

On May 27, 2025, The Trade Desk, Inc. held its annual meeting of stockholders, where four proposals were considered and voted upon. The stockholders elected two Class III directors, approved the 2025 Incentive Award Plan, endorsed executive compensation on a non-binding basis, and ratified the appointment of PricewaterhouseCoopers LLP as the independent auditor for 2025. These decisions reflect the company’s ongoing governance and operational strategies, impacting its leadership structure and financial oversight.

The most recent analyst rating on (TTD) stock is a Buy with a $100.00 price target. To see the full list of analyst forecasts on Trade Desk stock, see the TTD Stock Forecast page.