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.
- 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.
- 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.
- 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.