Breakfast News: The Trade Desk Triumphs
May 9, 2025
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| Dow 41,368 (+0.62%) |
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| Bitcoin $101,430 (+5.4%) |
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Source: Image created by Jester AI.
1. Strong Results From The Trade Desk
The Trade Desk (TTD 0.55%) soared almost 15% after the market closed, as it reported a beat in quarterly revenue and earnings, fueled by the Unified ID 2.0 platform having more partner and user signups. The company was featured in our most recent list of 10 highest-conviction ideas in Stock Advisor.
- "We're encouraged by the early impact of the strategic upgrades at the company we implemented in Q4": CEO Jeff Green spoke about the improvements such as hiring a new COO, recently closing the acquisition of Sincera, and pushing for more third-party integrations of its key OpenPath product.
- Customer retention over 95% during Q1: Having hit the mark for the past eleven consecutive years, the guidance provided indicates retention should continue, with the Q2 revenue outlook showing healthy double-digit sequential growth.
2. Top Foolish Movers
Despite missing earnings expectations, Rule Breakers recommendation Pinterest (PINS 0.29%) spiked up over 13% ahead of the market open, in part thanks to a surprise 10% growth in monthly active users versus this time last year.
- Beating the S&P 500 by 84% since 2022 Stock Advisor rec: Cloudflare (NET 1.40%) popped 11% higher following the closing bell. Aside from winning its largest deal ever, the company issued guidance calling for 25% revenue growth this year.
- Partially recovering losses from disappointing results last month: Hidden Gems rec Enphase Energy (ENPH 5.31%) rallied 12.17% during market hours following the launch of a new plug-and-play solar energy system in Germany.
3. Chipmakers React to Trade Barriers
Nvidia (NVDA -2.85%) plans to release a downgraded AI chip to appease U.S. export restrictions, with TSMC (TSM -1.89%) flagging a rise in April revenue ahead of tariff restrictions. Both show the rapid changes taking place as the sector seeks to contend with global trade uncertainty.
- China accounted for $17 billion of 2024 sales: Nvidia's most powerful AI chip cleared for Chinese sales was effectively blocked from the market last month. In formulating new technical thresholds, the new release could enable it to keep serving the key Chinese market.
- TSMC reported its highest ever monthly revenue: April sales jumped 48.1% year over year, largely due to the chipmaker's customers bringing forward their orders based on concern around increased costs from potential U.S. trade tariffs.
4. Hidden Gems: Sezzle Sizzles
Tom Gardner
Under the Radar
Sezzle (SEZL -2.22%) rose 42% yesterday after delivering exceptional Q1 earnings, far outpacing the estimates of the lone two analysts covering it. The Buy Now Pay Later business posted sales of $104 million and $36 million in net income.
The company's shopping app, which allows users to access interest-free loans of up to $2,500 over a six-week period, has now garnered a 4.9 rating across more than 200,000 ratings in Apple's (AAPL 0.76%) App Store.
Sezzle remains one of the most highly rated small-caps in our Moneyball database, and is a 14X recommendation across Hidden Gems portfolios.
5. Foolish Fun
Pinterest has made heavy investments in AI and machine learning to increase the personalization and relevance of its content. This has helped increase the number of users and boosted engagement on the platform.
Whether Pinterest can capture a greater percentage of advertisers' budgets is the key to the stock unlocking its potential, says Fool analyst Rich Greifner. How high is your conviction that it can do so, and beat the market over the next five years: Extremely confident; Relatively optimistic; Some doubts; or Minimal faith? Debate with friends and family, or become a member to hear what your fellow Fools are saying!
