Shares of The Trade Desk (NASDAQ:TTD) climbed sharply higher again on Tuesday, surging as much as 10.6%, though it ended the trading day up 9.4%.
The catalyst driving the stock higher was a flurry of activity by Wall Street analysts who scrambled to update their price targets on the heels of The Trade Desk's impressive third-quarter financial results.
Before the market open on Monday, The Trade Desk had delivered better-than-expected quarterly results, which came as a surprise to some investors. After Snap sounded the alarm, there were concerns that the debut of Apple's latest privacy features and Alphabet's moves to do away with ad-tracking cookies would weigh heavily on the vast majority of ad-tech stocks.
The Trade Desk's results proved investors shouldn't paint all digital advertisers with the same brush, and its stock soared as a result.
What followed was the inevitable rush by Wall Street analyst's to revise their price targets in an effort to keep up with The Trade Desk's surging stock price, which gained 30% on Monday.
No less than eight analysts scrambled to raise their expectations on The Trade Desk stock between Monday and Tuesday. The price-target increases ranged in price from $100 to $120, with the average target climbing to $105, up from $98.
Wells Fargo analyst Brian Fitzgerald was among the most bullish, raising his price target to $120, up from $115, while maintaining an overweight (buy) rating on the stock. This would represent potential gains for investors of 35% from Monday's closing price.
Fitzgerald noted that spending by The Trade Desk's customers remained robust and that the company seemed immune to the headwinds that battered many other digital advertisers. He also cited an "impressive array of potential catalysts" that could drive the stock higher from here.
Given The Trade Desk's solid results and industry-leading position, it's little wonder analysts were scrambling to keep up.