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Is This a Buying Opportunity for Trade Desk Stock?

By Jose Najarro - May 11, 2021 at 12:15PM

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Trade Desk lost more than 25% of its valuation in one day after reporting earnings. Is this a buying opportunity?

In today's video, I look at Trade Desk (TTD -1.50%) earnings. The stock price dropped over 25% in one day after the company reported earnings on May 10 that did better than expected. Below I share three reasons why this might be a buying opportunity.

Three Reasons to Add Trade Desk to Your Watch List.

  1. Trade Desk's most recent earnings reported 37% Y/Y revenue growth, better than the overall consensus of analysts. The revenue guidance that Trade Desk provided is also higher than what analysts were expecting. 
  2. Trade Desk fundamentally is in a strong place as it currently has no debt and roughly $679M in cash and short-term investments. Adjusted EBITDA Margins have also improved to 32% this quarter compared to 24% same time last year.
  3. With the stock price dropping approximately 50% from its 52-week high, Trade Desk now has a FWD Price to Sales ratio of roughly 16. 

Click the video below for my full thoughts. 

*Stock Prices used were the midday prices of May 10, 2021. The video was published on May 10, 2021. 



Jose Najarro owns shares of Magnite, Inc. The Motley Fool owns shares of and recommends Magnite, Inc and The Trade Desk. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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Stocks Mentioned

The Trade Desk Stock Quote
The Trade Desk
TTD
$69.12 (-1.50%) $-1.05

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