TTD - The Trade Desk: The Market Hasn't Lost Its Plot
2024-02-13 13:30:00 ET
Summary
- Since my November update, The Trade Desk stock has underperformed the S&P 500 slightly.
- Investors seem less concerned about a weaker 2024 outlook as TTD heads into its Q4 earnings release well off its November 2023 lows.
- The Trade Desk's opportunities in the digital ad value chain are clear, but competitive threats from Google and uncertain UID 2.0 transitions pose risks.
- I argue why the market could inflict more pain if its 2024 guidance disappoints.
- Despite that, TTD stock remains well-supported at the $60 level, suggesting the risk/reward profile is favorable.
Investors in The Trade Desk, Inc. ( TTD ) have underperformed the S&P 500 ( SPX ) ( SPY ) slightly since my previous update in November 2023 . My thesis played out as the steep collapse led to a bottom in the same month, as it recovered toward its December highs. However, another selloff followed before TTD bottomed out at the $60 level again in January 2024, underpinning its November bottom. Therefore, I believe market sentiments over the past three months have demonstrated that TTD remains well-supported at the low $60 zone....
The Trade Desk: The Market Hasn't Lost Its Plot