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Trade Desk - AI Stock Analysis

Analysis generated July 1, 2025

Trade Desk is a leading technology company that provides a platform for advertisers to buy digital advertising campaigns. The platform leverages vast amounts of data to serve targeted ads across various channels including display, mobile, and video. Trade Desk is recognized for its state-of-the-art technology and the efficiency it brings to the ad buying process, alongside transparency in reporting and performance.

Fundamental Analysis

For the most recent quarter, Trade Desk reported a revenue of $616 million. This represents a decrease of 16.87% compared to the previous quarter, signaling a potential short-term concern. However, compared to the same quarter last year, revenue increased by 25.40%, indicating strong year-over-year growth.

Net income for the last quarter was reported at $51 million. This figure shows a significant decrease of 72.19% compared to the previous quarter, raising short-term red flags. Conversely, when compared to the same quarter last year, net income saw an increase of 60.07%, reinforcing positive longer-term growth perspectives.

EBITDA for the last quarter was $0, which marks a 100% decrease compared to both the previous quarter and the same quarter last year. This complete erosion of EBITDA is a notable concern and likely indicative of rising operational costs or a shift in financial health.

The current Price-to-Earnings (P/E) ratio stands at 84.55. This elevated P/E ratio suggests that Trade Desk may be overvalued, potentially leading to a bearish outlook from investors. Furthermore, recent insider sales could be indicating a lack of confidence from within the company.

Technical Analysis

The current stock price for Trade Desk is $73.47. This marks a short-term decline of 2.33% compared to a month ago, which could invite concerns for short-term traders. More worryingly, the stock price has decreased 25.29% over the past year, which may affect long-term investor sentiment.

Despite these declines, the trend appears to be bullish. The current 10-day Simple Moving Average (SMA10) is 70.02, up from the previous SMA10 of 69.50, suggesting a potential upward price movement. Additionally, the Relative Strength Index (RSI) is at 62.9, indicating a neutral condition without signs of extreme overbought or oversold scenarios.

Alternative Data Analysis

Alternative data offers unique insights into Trade Desk. Job listings have decreased by 11% in recent months, indicating potential cost-cutting efforts. This may be a red flag for investors looking for growth signals. However, internal sentiment is largely positive, with 87% of employees maintaining a positive outlook.

From a consumer perspective, Trade Desk's website garners an estimated 900,000 visitors with stable traffic patterns in recent months. Social media engagement is also gaining traction; Instagram followers have increased by 21%, suggesting rising interest among consumers, although Twitter followers remain static at 20,000.

According to AltIndex's AI, Trade Desk holds a score of 61, which is comfortably within a buy signal range. This suggests that fundamentals, technicals, and alternative data collectively present a favorable view of Trade Desk's stock.

Conclusion and Recommendation

While Trade Desk displays robust year-over-year revenue and net income growth, short-term financial health raises concerns. The high P/E ratio and recent insider sales are additional bearish signals. However, technical indicators show a bullish trend, and alternative data reflects a resilient and optimistic outlook among employees and growing consumer interest.

Overall, despite some red flags, the compelling year-over-year growth and positive alternative indicators position Trade Desk as a stock worth considering. Investors should weigh the short-term challenges against the company’s long-term prospects before making investment decisions.

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.