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Trade Desk - AI Stock Analysis

Analysis generated May 12, 2025

The Trade Desk (TTD) operates as a technology company that provides a global technology platform for buyers of advertising. The company offers a self-service, cloud-based platform that enables ad buyers to create, manage, and optimize data-driven digital advertising campaigns. Trade Desk has been a significant player in the programmatic advertising space, providing services that cover various channels, including display, video, audio, and social across different devices.

Fundamental Analysis

In the last quarter, Trade Desk reported revenue of $616 million. This figure represents a 16.87% decrease compared to the previous quarter, indicating potential short-term challenges. On the brighter side, when compared to the same quarter last year, revenue increased by 25.40%, reflecting robust year-over-year growth and suggesting that the company may still be on a strong long-term trajectory.

Looking at net income, the company posted $51 million for the last quarter, which is a steep 72.19% decrease compared to the quarter before, signaling possible operational issues or one-time expenses. However, the year-over-year increase of 60.07% in net income from the same quarter last year gives a more positive long-term perspective.

The EBITDA for the last quarter was $0, indicating a 100.00% decrease both quarter-over-quarter and year-over-year. These figures are concerning as they may highlight issues in core operational profitability.

The current Price to Earnings (P/E) ratio is 91.08, which is significantly high and could potentially indicate that the stock is overvalued, thereby cautioning investors. Additionally, recent insider selling activities might be considered a bearish signal, suggesting that even those within the company are not highly optimistic about its near-term prospects.

Technical Analysis

The current stock price is $79.83, which represents a 60.37% increase compared to a month ago indicating a strong short-term upward trend. However, this price is an 8.80% decrease from a year ago, which indicates some volatility and potential long-term concerns.

The stock's trend remains bullish with the current Simple Moving Average (SMA10) at 62.86, higher than the previous SMA10 of 60.29, indicating a potential upward trend in price movement. The Relative Strength Index (RSI) stands at 68.1, suggesting a neutral condition but nearing the overbought territory, which investors should monitor closely.

Alternative Data Analysis

Looking at job postings, Trade Desk has 157 open positions, which is a 55% increase over the past few months. This suggests that the company is investing in growth, potentially a healthy sign. Employee sentiment also reflects a positive outlook with 86% of employees having a favorable business outlook, marking strong internal confidence.

Customer acquisition metrics show that Trade Desk had approximately 700,000 visitors to their webpage, although this number has dropped by 21% in recent months, which is worrisome and could indicate potential challenges in attracting new clients. On the other hand, customer engagement on social media shows positive trends with a 9% increase in Instagram followers, indicating growing interest and engagement in the company.

Lastly, based on AltIndex’s AI score, which predicts stock price movements combining fundamental, technical, and alternative data, Trade Desk receives a score of 65, suggesting a buy signal.

Conclusion

Trade Desk shows a mixed but generally positive outlook. The company exhibits strong year-over-year growth in revenue and net income, although recent quarters indicate some causes for concern. The high P/E ratio suggests the stock may be currently overvalued. On the technical side, the stock has shown positive short-term momentum, although long-term concerns remain. Alternative data points, such as job postings and employee sentiment, offer a more positive outlook, although the drop in webpage visitors could signal potential issues. Given all this, Trade Desk presents a complex picture that may reward investors who are cautious yet optimistic about its long-term potential.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.