In today's video, I look at Trade Desk (NASDAQ:TTD) 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. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.