TTD - Beyond Cookies: The Trade Desk New Strategy Shines But Hold

2024-06-28 07:37:10 ET

Summary

• The Trade Desk reported impressive Q1 2024 earnings, exceeding revenue and EPS expectations with strong guidance for the next quarter.
• The company is a leader in programmatic advertising, particularly in the growing CTV space, with strategic partnerships enhancing its position.
• Management shows strong leadership qualities, focusing on CTV opportunities and maintaining financial stability, but valuation metrics suggest potential overpricing.
• Initiating coverage with a hold based on The Trade Desk healthy financials, strong management team, and innovation in AdTech. However, I find much of the growth is priced in.

Investment Thesis

The Trade Desk ( TTD ), a leader in digital advertising software, recently reported impressive Q1 2024 earnings. Both revenue and EPS exceeded analyst expectation, with revenue surging 28.3% YoY to $491.25M. The company’s guidance for the next quarter also bodes well, suggesting continued growth. Additionally, TTD boasts a healthy free cash flow, indicating strong financial health....

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