Trade Desk (TTD) AI Stock Analysis

• Market Cap: $25.68B
• Dividend Yield: N/A
• Average Volume (3M): 20.40M
• Price to Earnings (P/E): 63.3
• Beta (1Y): 1.47
• Revenue Growth: 23.18%
• EPS Growth: 63.48%
• Country: US
• Employees: 3,522
• Sector: Communication Services
• Sector Strength: 87
• Industry: Software - Application
• EPS (TTM): 0.18
• Shares Outstanding: 445,666,930
• 10 Day Avg. Volume: 30,047,601
• 30 Day Avg. Volume: 20,398,225
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 12.82
• Enterprise Value/Gross Profit: 16.15
• Enterprise Value/Ebitda: 62.47
• 1Y Price Target: $76.60
• Price Target Upside: 46.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 28

• Rating: 66 Neutral
• Price Target: $59.00 ▲(12.81% Upside)

The Trade Desk's overall stock score is driven by strong financial performance and positive earnings call insights, highlighting robust revenue growth and strategic initiatives. However, technical analysis indicates bearish momentum, and the high P/E ratio suggests potential overvaluation. These factors collectively result in a moderate overall score.

Positive Factors

Leadership and Management

Bringing aboard Alex Kayyal as CFO is intended to add experience managing both a diverging growth trajectory and uncharted waters ahead.

Market Alignment

If GroupM’s 10.1% estimate holds true, it suggests a potential for aligning revenue growth with market expectations.

Strategic Improvements

Programmatic buyers across the agency landscape were shifting budget to Trade Desk, due to Kokai-related performance improvements.

Negative Factors

Growth Uncertainty

A greater level of uncertainty around the macro and agency backdrop, recovery timeline, and Trade Desk’s ability to recapture 20%+ rates of top line growth.

Macroeconomic Impact

Core advertisers, which include larger brand advertisers, are more impacted by macroeconomic factors and are pulling back on ad spend.

Valuation Concerns

It will be difficult for Trade Desk to recapture the valuation premium that the market once afforded the company, and the risk/reward for betting on a turnaround at this stage isn't very compelling.

Trade Desk Business Overview & Revenue Model

Company Description

Trade Desk (TTD) is a leading technology company in the digital advertising sector, specializing in programmatic advertising solutions. Founded in 2009, the company provides a self-service platform that enables advertisers to purchase and manage digital ad inventory across various channels, including display, video, audio, and social media. Trade Desk's core products include its demand-side platform (DSP), which leverages data analytics and machine learning to optimize ad campaigns and enhance targeting capabilities for brands and agencies.

How the Company Makes Money

Trade Desk generates revenue primarily through a commission-based model, where it takes a percentage of the total ad spend that advertisers allocate through its platform. This model is complemented by the sale of data and analytics services that help marketers understand their audience and optimize their advertising strategies. Key revenue streams include fees from advertisers for using the platform and partnerships with various media owners that expand inventory availability. Additionally, Trade Desk has established significant partnerships with data providers and technology companies, which enhance its offerings and contribute to its earnings through improved targeting and campaign effectiveness.

Trade Desk Financial Statement Overview

Summary

Trade Desk exhibits a strong financial position with consistent revenue growth, robust profitability, and efficient cash flow management. The low leverage and high return on equity highlight a well-managed balance sheet. While the decrease in stockholders' equity warrants monitoring, the overall financial health of the company is commendable, positioning it well for future growth.

Income Statement

Trade Desk has demonstrated strong revenue growth with a TTM increase of 4.26% and consistent annual growth. The gross profit margin remains robust at approximately 79.4% TTM, indicating efficient cost management. Net profit margin is healthy at 15.57% TTM, reflecting solid profitability. EBIT and EBITDA margins are stable, supporting operational efficiency. Overall, the income statement reflects a strong growth trajectory and profitability.

Balance Sheet

The company's balance sheet is solid with a low debt-to-equity ratio of 0.13 TTM, indicating prudent leverage management. Return on equity is strong at 15.19% TTM, showcasing effective use of equity capital. The equity ratio is healthy, suggesting a stable financial structure. However, the decrease in stockholders' equity over the periods could be a potential concern if it continues.

Cash Flow

Trade Desk's cash flow is robust, with a free cash flow growth rate of 8.75% TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is solid, reflecting efficient cash conversion. The free cash flow to net income ratio of 80.26% TTM underscores the company's ability to generate cash relative to its net income, supporting financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.68B	2.44B	1.95B	1.58B	1.20B	836.03M
Gross Profit	2.13B	1.97B	1.58B	1.30B	974.91M	657.22M
EBITDA	549.82M	514.66M	280.90M	168.08M	124.82M	144.21M
Net Income	417.19M	393.08M	178.94M	53.38M	137.76M	242.32M
Balance Sheet
Total Assets	5.96B	6.11B	4.89B	4.38B	3.58B	2.75B
Cash, Cash Equivalents and Short-Term Investments	1.69B	1.92B	1.38B	1.45B	958.78M	624.04M
Total Debt	343.55M	312.21M	235.89M	260.96M	284.60M	292.43M
Total Liabilities	3.26B	3.16B	2.72B	2.27B	2.05B	1.74B
Stockholders Equity	2.70B	2.95B	2.16B	2.12B	1.53B	1.01B
Cash Flow
Free Cash Flow	745.78M	632.39M	543.30M	456.85M	318.54M	324.95M
Operating Cash Flow	929.17M	739.46M	598.32M	548.73M	378.51M	405.07M
Investing Cash Flow	-466.53M	-157.51M	-107.59M	-304.37M	-93.64M	-143.27M
Financing Cash Flow	-575.61M	-107.61M	-626.11M	31.99M	31.93M	44.68M

Trade Desk Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 52.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 52.3 is below the 20-day moving average (MA) of 70.21, below the 50-day MA of 72.73, and below the 200-day MA of 86.77, indicating a bearish trend. The MACD of -7.53 indicates Positive momentum. The RSI at 29.21 is Positive, neither overbought nor oversold. The STOCH value of 23.88 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
DV	77 Outperform	$2.56B	50.60	4.80%	―	16.54%	-12.60%
GTM	70 Outperform	$3.36B	39.40	5.22%	―	-0.54%	626.94%
TTD	66 Neutral	$25.68B	63.33	16.36%	―	23.18%	63.48%
PUBM	61 Neutral	$374.96M	124.65	-0.65%	―	3.53%	-109.03%
Sector *	60 Neutral	$42.79B	1.96	-11.10%	4.01%	1.89%	-41.77%
DSP	59 Neutral	$593.00M	276.49	5.20%	―	30.92%	―
GRND	50 Neutral	$3.07B	―	-76.08%	―	28.35%	24.57%

Trade Desk Corporate Events

Trade Desk Appoints Omar Tawakol to Board

On August 2, 2025, The Trade Desk appointed Omar Tawakol as a Class II director to its Board, effective August 11, 2025, expanding the Board from seven to eight members. Tawakol, CEO of Rembrand, Inc., will participate in the company’s non-employee director compensation program, receiving annual and initial equity grants. The Trade Desk reported strong financial results for Q2 2025, with revenue reaching $694 million, a 19% increase year-over-year. The company continues to innovate with its Kokai platform and expand its partnerships, enhancing its industry positioning and stakeholder value. The Trade Desk also announced new collaborations and integrations, including support for Unified ID 2.0, which aims to improve advertising relevance while prioritizing user privacy.

Trade Desk Appoints Alex Kayyal as New CFO

The Trade Desk announced the appointment of Alex Kayyal as the new Chief Financial Officer, effective August 21, 2025, succeeding Laura Schenkein who will transition out of the role by the end of the year. Kayyal, who has been on the company’s board since February 2025 and has extensive experience in technology investment and financial strategy, will lead The Trade Desk’s long-term financial and investment strategy, aiming to drive sustained growth and scale for the company. Schenkein, after more than a decade of service, will remain as a non-executive officer to ensure a smooth transition, while Kayyal’s appointment is expected to leverage his growth mindset to maximize the company’s potential in the digital advertising landscape.

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.