For folks looking to cash in on the revolution in global advertising tech, Trade Desk (TTD) has provided value-added exposure to this growth sector.
Yet until now, many investors did not have room for TTD stock in their portfolios. Even after the share price came down this year, the stock was still too expensive for some investors.
Fortunately, it appears that Trade Desk recognized this issue. Not only that, but the company responded with a solution that made TTD more accessible to traders with smaller account sizes. At the same time, the company has been expanding geographically into a market with excellent potential for revenue generation. (See The Trade Desk stock chart on TipRanks)
What Happened with TTD Stock
TTD stock crashed, along with the broader stock market, in March of 2020. However, the stock rebounded sharply after that, posting gains of more than 300% by the end of the year.
The shares pulled back during the first half of 2021, but that is not why TTD stock is so much more affordable today than it was a couple of weeks ago.
Rather, it’s because of a 10-for-1 stock split. Starting on June 17, 2021, investors could buy shares of Trade Desk for prices in the $60’s, which is much cheaper than the $600’s. The share split could be good sign for Trade Desk. Generally speaking, forward splits tend to suggest that a company is growing, while reverse splits can be signs of a shrinking company.
Trade Desk’s forward stock split indicates that the company has made impressive progress since its 2016 initial public offering (IPO). In a press release associated with the stock split, Trade Desk CEO Jeff Green observed that his company “has consistently delivered strong top line growth and GAAP profitability as a publicly traded company.”
“In that time, we have emerged as the default demand side advertising platform for the open internet, and we continue to invest to build on that leadership position,” Green added.
Global Expansion
In other news, Trade Desk recently revealed that it has launched operations in India – a huge and exciting market for digital advertising.
A study by Global Web Index found that Indians, on average, are spending as many as eight hours per day online. This presents a ripe revenue-generation opportunity for Trade Desk, which provides an omni-channel platform for marketers to reach audiences across different devices including computers, mobile devices, tablets, and connected TV.
Tejinder Gill, Trade Desk’s India general manager, asserted, “Digital is the fastest-growing advertising segment in India and, as a result, marketers in India are seeking more trust and transparency as they shift more campaign budget there.”
The implication, of course, is that Trade Desk will fulfill that need in India. India’s population is currently approaching 1.4 billion. Clearly, Trade Desk is ambitiously pursuing a vast market that could take the company to the next level, while greatly enhancing its shareholder value.
Wall Street Weighs In
According to TipRanks’ analyst rating consensus, TTD is a Strong Buy, based on 10 Buy and 3 Hold ratings. According to TipRanks’ Smart Score, TTD earns a “Perfect 10,” indicating that the stock is likely to outperform the market.
The Takeaway
The recent forward share split, and the company’s foray into India, indicate that Trade Desk is in rapid expansion mode. Now that TTD stock is more affordable, this could be an opportunity for investors to take a long position.
Disclosure: At the time of publication, David Moadel did not have a position in any of the securities mentioned in this article.
Disclaimer: The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities.
