Trade Desk Stock Soars on Strong Q2 Earnings and Raised Price Targets

Trade Desk price target raised to $57 amid solid quarter By Investing.com

On Friday, Benchmark has increased the price target for The Trade Desk (NASDAQ:TTD) to $57.00, up from the previous $49.00, while maintaining a Sell rating on the stock. The firm noted The Trade Desk's consistent performance, highlighting a strong quarter and a positive outlook. The Trade Desk reported a commendable quarter, with results and projections that met expectations. The company's third-quarter revenue is expected to include a $15 million contribution from political advertising, which represents about 300 basis points of the projected 25% year-over-year revenue increase. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) for the third quarter is forecasted at $248 million. This indicates a year-over-year non-GAAP (generally accepted accounting principles) operating expense leverage of approximately 100 basis points. However, this is a decrease from the leverage of around 480 and 350 basis points year-over-year reported in the first and second quarters of 2024, respectively. The anticipated reduction in operating expense leverage may be due to additional marketing investments in the third quarter through the company's Kokai initiative and an increase in staff numbers. It is worth noting that The Trade Desk expanded its workforce significantly, adding 1,000 employees in the second half of 2022 and another 500 in 2023. In other recent news, The Trade Desk has been making significant strides in its financial performance and strategic partnerships. The company reported robust Q2 earnings with a 26% increase in sales, exceeding expectations. This strong performance, as highlighted by CFRA, is largely attributed to The Trade Desk's growing influence in the connected TV (CTV) sector, with the firm's adjusted EBITDA margin improving to 41%. Furthermore, The Trade Desk's strategic partnership with Netflix (NASDAQ:NFLX) is expected to bolster the increasing supply in the CTV market. The company's potential for growth also extends to its artificial intelligence platform Kokai and the continued adoption of UID2, its alternative to traditional cookies. Despite Alphabet (NASDAQ:GOOGL)'s decision to continue supporting cookies, The Trade Desk's UID2 is anticipated to gain traction. The Trade Desk has also forecasted a minimum Q3 revenue of $618 million, with an expected adjusted EBITDA of around $248 million. Despite some challenges posed by economic uncertainty and browser compatibility issues with UID2, the company maintains a positive outlook. This is further reinforced by its strong financial standing with $1.5 billion in cash and no debt, as well as its high customer retention rate of over 95%. The Trade Desk's (NASDAQ:TTD) financial health and market performance demonstrate a blend of strengths and investor considerations. With a robust gross profit margin of 81.29% in the last twelve months as of Q1 2024, the company showcases its ability to maintain profitability in its operations. This is underscored by the impressive 24.88% year-over-year revenue growth, indicating that The Trade Desk is not only growing but doing so at an accelerating pace. However, the company's valuation metrics suggest a premium market position. The Trade Desk is currently trading at a high P/E ratio of 185.04, which climbs even higher to 234.27 when adjusted for the last twelve months as of Q1 2024. This elevated valuation is further reflected in its Price/Book ratio of 21.76. While these numbers indicate strong market confidence, they also highlight the high expectations investors have for the company's future earnings growth. InvestingPro Tips for The Trade Desk further reveal that the company holds more cash than debt on its balance sheet and is expected to see net income growth this year. These factors, combined with the fact that liquid assets exceed short-term obligations, provide a reassuring picture of fiscal stability. For those seeking a more comprehensive analysis, there are additional InvestingPro Tips available, offering deeper insights into The Trade Desk's financial and operational prospects. As of the latest update, the InvestingPro platform lists a total of 16 InvestingPro Tips for The Trade Desk, which can be accessed for further detailed analysis and investment considerations.

Trade Desk shares target raised by CFRA on strong Q2 earnings By Investing.com

CFRA has raised the price target for The Trade Desk (NASDAQ:TTD) to $110 from the previous target of $100, while maintaining a Buy rating on the company's stock. The revised price target is based on a forward price-to-earnings (P/E) ratio of 49 times the firm's 2026 earnings projection, which has been set at $2.25 per share. The valuation is higher than that of The Trade Desk's peers but remains below the company's historical averages. The Trade Desk reported a second-quarter earnings per share (EPS) of $0.39, surpassing the consensus estimate of $0.36 and the prior year's figure of $0.28. The company's sales saw a 26% increase, exceeding expectations. The robust performance has been attributed to the company's growing influence in the connected TV (CTV) sector. Additionally, The Trade Desk's adjusted EBITDA margin improved to 41% from 39%, benefiting from economies of scale. The firm also highlighted the strategic partnership between The Trade Desk and Netflix (NASDAQ:NFLX), which is expected to support the increasing supply in the CTV market. The Trade Desk boasts a high customer retention rate of over 95%, which is viewed positively by analysts. With the digital advertising market remaining robust, The Trade Desk is projected to grow at an annualized rate of over 20% through 2026. The Trade Desk's potential for growth includes expanding its international market presence, which currently accounts for 12% of its sales, leveraging opportunities in retail media, increasing interest in its artificial intelligence platform Kokai, and the continued adoption of UID2, The Trade Desk's alternative to traditional cookies. Despite Alphabet (NASDAQ:GOOGL)'s decision to continue supporting cookies, The Trade Desk's UID2 is still anticipated to gain traction. The company's net cash position stands strong at $1.5 billion. The company has projected a minimum revenue of $618 million for Q3, with an expected adjusted EBITDA of around $248 million. Despite challenges posed by economic uncertainty and browser compatibility issues with UID2, The Trade Desk maintains a positive outlook, backed by strategic partnerships in CTV and Retail Media, and a robust financial standing with $1.5 billion in cash and no debt. Following CFRA's optimistic outlook on The Trade Desk (NASDAQ:TTD), it's noteworthy to consider the company's financial health and market performance as reflected by recent data. The Trade Desk's market capitalization stands at a robust $47.24 billion, affirming its substantial presence in the digital advertising arena. Its impressive gross profit margin, reaching over 81% in the last twelve months as of Q1 2024, underscores the company's efficiency and the high value of its services. InvestingPro Tips highlight that The Trade Desk holds more cash than debt on its balance sheet, providing financial stability and flexibility. Furthermore, analysts predict the company will be profitable this year, which aligns with its strong track record of net income growth. While the company is trading at a high earnings multiple, with a P/E ratio of 185.5 and an adjusted P/E ratio of 234.97 for the last twelve months as of Q1 2024, this is indicative of investor confidence in its future growth prospects. For those interested in further insights, there are 15 additional InvestingPro Tips available on The Trade Desk's profile. Despite recent volatility, with the stock experiencing a 13.05% drop over the last month, The Trade Desk's long-term performance has been robust, with a 9.07% return over the past year. This volatility may present an opportunity for investors who are bullish on the company's strategic initiatives and market position. The Trade Desk's next earnings date is set for November 7, 2024, which will be a pivotal moment for investors to assess the company's ongoing performance and future outlook.

Why Are The Trade Desk Shares Moving Higher On Friday - Trade Desk (NASDAQ:TTD)

The company issued guidance for the third quarter for revenue and adjusted EBITDA. The Trade Desk, Inc. TTD stock is trading higher on Friday after the company reported better-than-expected 2024 fiscal year second quarter revenue and issued third quarter guidance above estimates. The Details: The Trade Desk reported second quarter earnings after the market closed on Thursday. The company reported adjusted EPS of 39 cents beating analysts estimate of 35 cents and sales of $584.55 million beating analysts estimate of $577.799 million. Notably, the sales figure of $584.55 million represents a 25.91% increase compared to the same period last year. Also, the company reported $242 million in adjusted EBITDA and Non-GAAP net income of $197 million. The Trade Desk issued third quarter guidance for revenue. The company expects at least $618 million versus analyst estimates of $577 million. In addition, the company expects adjusted EBITDA of about $248 million. "Q2 was another strong quarter for The Trade Desk, with revenue of $585 million, representing 26% year-over-year growth. We've made significant strides in CTV, retail media and identity, empowering the world's largest brands to buy premium media on the open internet with unprecedented agility and precision," said Jeff Green, co-founder and CEO of The Trade Desk. "As Kokai ramps, we're intuitively surfacing value for advertisers, integrating data into every decision, advancing the full power of AI as a co-pilot, and enabling advertisers to maximize the potential of their first party data. With ongoing innovations in Kokai, the widespread adoption of UID2, and the expanding use of retail data, we will continue to deliver exceptional value to advertisers and grow our leadership in key high growth markets such as CTV." Analyst Changes: Following the earnings report, several analysts issued price target changes. Keybanc analyst Justin Patterson maintained Trade Desk with a Overweight and raised the price target from $105 to $115. Susquehanna analyst Shyam Patil maintained Trade Desk with a Positive and raised the price target from $110 to $135. Stifel analyst Mark Kelley reiterated Trade Desk with a Buy and raised the price target from $105 to $111. Truist Securities analyst Youssef Squali maintained Trade Desk with a Buy and raised the price target from $105 to $108. Wedbush analyst Scott Devitt reiterated Trade Desk with a Outperform and maintained a $110 price target. See Also: Insider Decision: Ravi Kumar Singisetti Offloads $495K Worth Of Cognizant Tech Solns Stock TTD Price Action: At the time of writing, The Trade Desk stock is moving 9.7% higher at $96.84 per data from Benzinga Pro. Image: Courtesy of The Trade Desk, Inc. Market News and Data brought to you by Benzinga APIs