Trade Desk (TTD) AI Stock Analysis

• Market Cap: $33.40B
• Dividend Yield: N/A
• Average Volume (3M): 9.76M
• Price to Earnings (P/E): 83.1
• Beta (1Y): 1.73
• Revenue Growth: 25.07%
• EPS Growth: 103.30%
• Country: US
• Employees: 3,522
• Sector: Technology
• Sector Strength: 78
• Industry: Software - Application
• EPS (TTM): 0.33
• Shares Outstanding: 448,136,000
• 10 Day Avg. Volume: 6,364,220
• 30 Day Avg. Volume: 9,758,019
• PEG Ratio: -6.59
• Price to Book (P/B): 10.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 47.78
• Enterprise Value/Market Cap: 0.35
• Enterprise Value/Revenue: 1.22
• Enterprise Value/Gross Profit: 5.65
• Enterprise Value/Ebitda: 6.46
• 1Y Price Target: $87.84
• Price Target Upside: 29.25% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 29

• Rating: 77 Outperform
• Price Target: $81.00 ▲(19.19%Upside)

Trade Desk's overall stock score is driven primarily by strong financial performance and a positive outlook from the recent earnings call. While technical analysis presents mixed signals, the company's strategic focus and robust growth prospects provide a compelling investment narrative. The high P/E ratio suggests caution regarding valuation.

Positive Factors

Financial Performance

Trade Desk reported Q1 results that exceeded both analyst and consensus forecasts.

Platform Capabilities

TTD's platform offers the largest global advertisers the ability to buy ads on every device, across every category of digital media, at scale.

Product Innovation

The creation of a GenAI-based creative marketplace by Trade Desk is expected to provide a new source of revenue by sharing in the revenue from GenAI-based apps.

Negative Factors

Business Model Risks

There is risk to a concentrated agency business --the top three representing 30%+ of total gross billings-- as TTD rightly prioritizes focus on a brand direct model.

Competitive Pressure

The narrative overhang around megacap competition could limit shares in the near-term.

Market Conditions

The weakening ad backdrop is starting to put pressure on both auto and CPG spend.

Trade Desk Business Overview & Revenue Model

Company Description

The Trade Desk, Inc. is a global technology company that empowers buyers of advertising through a self-service, cloud-based platform. Operating in the digital advertising sector, the company specializes in providing data-driven insights and real-time bidding capabilities to help advertisers optimize their media spend. The Trade Desk's platform enables clients to create, manage, and measure advertising campaigns across various channels, including display, video, audio, and social media.

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 exhibits a strong financial profile characterized by consistent revenue and profit growth, efficient cost management, and a solid balance sheet. The company's prudent leverage and strong cash flows indicate 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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.57B	2.44B	1.95B	1.58B	1.20B	836.03M
	Gross Profit
2.06B	1.97B	1.58B	1.30B	974.91M	657.22M
	EBIT
452.96M	427.17M	200.48M	113.65M	124.82M	144.21M
	EBITDA
497.96M	514.66M	280.90M	168.08M	124.82M	144.21M
	Net Income Common Stockholders
412.09M	393.08M	178.94M	53.38M	137.76M	242.32M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.74B	1.92B	1.38B	1.45B	958.78M	624.04M
	Total Assets
5.71B	6.11B	4.89B	4.38B	3.58B	2.75B
	Total Debt
334.97M	312.21M	235.89M	260.96M	284.60M	292.43M
	Net Debt
-783.58M	-1.06B	-659.24M	-769.55M	-469.56M	-144.92M
	Total Liabilities
2.99B	3.16B	2.72B	2.27B	2.05B	1.74B
	Stockholders Equity
2.72B	2.95B	2.16B	2.12B	1.53B	1.01B
Cash Flow		Free Cash Flow
685.76M	632.39M	543.30M	456.85M	318.54M	324.95M
	Operating Cash Flow
845.42M	739.46M	598.32M	548.73M	378.51M	405.07M
	Investing Cash Flow
-268.98M	-157.51M	-107.59M	-304.37M	-93.64M	-143.27M
	Financing Cash Flow
-376.09M	-107.61M	-626.11M	31.99M	31.93M	44.68M

Trade Desk Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 67.96
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 67.96 is below the 20-day moving average (MA) of 73.90, above the 50-day MA of 63.02, and below the 200-day MA of 95.70, indicating a neutral trend. The MACD of 1.26 indicates Positive momentum. The RSI at 43.63 is Neutral, neither overbought nor oversold. The STOCH value of 11.40 is Positive, 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
TTD	77 Outperform	$33.40B	83.11	16.88%	―	25.07%	103.30%
GTM	73 Outperform	$3.18B	78.73	2.23%	―	-3.12%	-37.59%
GRND	73 Outperform	$4.51B	―	-63.52%	―	30.08%	-196.62%
DV	73 Outperform	$2.36B	48.89	4.83%	―	15.30%	-22.69%
PUBM	72 Outperform	$543.09M	126.30	1.94%	―	3.62%	-53.21%
DSP	65 Neutral	$790.22M	419.60	4.15%	―	30.64%	―
Sector *	62 Neutral	$11.80B	10.08	-7.46%	2.99%	7.37%	-8.21%

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.

Trade Desk Announces Board Changes with Wells’ Departure

On April 3, 2025, David Wells announced he would not seek re-election to The Trade Desk‘s board of directors at the 2025 annual meeting, ending his service since December 2015. The board plans to appoint Kathryn E. Falberg as chairperson of the audit committee, and upon Wells’s departure, the board will reduce its size from eight to seven directors.