Why Is The Trade Desk (TTD) Stock Soaring Today

Anthony Lee /
2023/04/27 1:36 pm EDT
Add to Watchlist

What Happened:

Shares of advertising software maker The Trade Desk (NASDAQ:TTD) jumped 5.67% in the morning session after competitor Meta reported impressive first-quarter results that surpassed analysts' daily active users (DAU), revenue, operating profit, earnings per share (EPS), and free cash flow expectations. Sales climbed in the first three months of the year, snapping a cycle of three straight quarters of revenue drops. Additionally, advertising revenue surpassed Consensus expectations, which was a positive read-through for the current state of the digital ad market. The Trade Desk, which is a programmatic platform enabling digital ad placement, is one of the potential beneficiaries.

What is the market telling us:

The Trade Desk's shares are very volatile and over the last year have had 49 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The Trade Desk is up 46.4% since the beginning of the year, but at $64.40 per share it is still trading 14.6% below its 52-week high of $75.41 from August 2022. Investors who bought $1,000 worth of The Trade Desk's shares 5 years ago would now be looking at an investment worth $12,500.

Is now the time to buy The Trade Desk? Access our full analysis of the earnings results here, it's free.