Trade Desk (TTD) AI Stock Analysis

• Market Cap: $21.02B
• Dividend Yield: N/A
• Average Volume (3M): 12.51M
• Price to Earnings (P/E): 49.1
• Beta (1Y): 1.23
• Revenue Growth: 20.82%
• EPS Growth: 41.82%
• Country: US
• Employees: 3,522
• Sector: Communication Services
• Sector Strength: 97
• Industry: Software - Application
• EPS (TTM): 0.23
• Shares Outstanding: 445,666,930
• 10 Day Avg. Volume: 13,360,084
• 30 Day Avg. Volume: 12,507,003
• PEG Ratio: 1.26
• Price to Book (P/B): 19.56
• Price to Sales (P/S): 23.60
• P/FCF Ratio: 91.23
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 8.28
• Enterprise Value/Gross Profit: 10.50
• Enterprise Value/Ebitda: 36.33
• 1Y Price Target: $64.53
• Price Target Upside: 49.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 23
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $47.00 ▲(8.65% Upside)

Trade Desk's overall stock score is driven by strong financial performance and positive earnings call insights, highlighting robust revenue growth and strategic innovations. However, technical analysis indicates bearish momentum, and the high P/E ratio suggests valuation concerns. The absence of a dividend yield further impacts the valuation score.

Positive Factors

Revenue Growth

Consistent revenue growth, especially excluding political spend, indicates strong demand for Trade Desk's platform and services, supporting long-term business expansion.

CTV Growth

The continued growth of CTV as a major channel suggests a strong position in a rapidly expanding market, enhancing Trade Desk's competitive edge.

Financial Strength

Strong EBITDA and a robust cash position with no debt provide financial flexibility and stability, enabling strategic investments and resilience against economic fluctuations.

Negative Factors

Macro-Economic Concerns

Ongoing macro-economic pressures could impact advertising budgets, affecting Trade Desk's revenue growth and operational performance in the medium term.

Competitive Challenges

Increased competition from major players may lead to pricing pressures, potentially impacting Trade Desk's market share and profitability.

Decline in Free Cash Flow Growth

A decline in free cash flow growth could signal challenges in cash flow management or increased capital expenditures, affecting long-term financial flexibility.

Trade Desk Business Overview & Revenue Model

Company Description

Trade Desk (TTD) is a leading technology company in the digital advertising sector, specializing in programmatic advertising solutions. Founded in 2009, the company provides a self-service platform that enables advertisers to purchase and manage digital ad inventory across various channels, including display, video, audio, and social media. Trade Desk's core products include its demand-side platform (DSP), which leverages data analytics and machine learning to optimize ad campaigns and enhance targeting capabilities for brands and agencies.

How the Company Makes Money

Trade Desk generates revenue primarily through a commission-based model, where it takes a percentage of the total ad spend that advertisers allocate through its platform. This model is complemented by the sale of data and analytics services that help marketers understand their audience and optimize their advertising strategies. Key revenue streams include fees from advertisers for using the platform and partnerships with various media owners that expand inventory availability. Additionally, Trade Desk has established significant partnerships with data providers and technology companies, which enhance its offerings and contribute to its earnings through improved targeting and campaign effectiveness.

Trade Desk Financial Statement Overview

Summary

Trade Desk demonstrates strong financial health with consistent revenue growth and profitability. The balance sheet is solid with low leverage, and cash flow generation remains robust despite recent declines in free cash flow growth. The company is well-positioned in the competitive software application industry, though it should monitor cost pressures and cash flow trends closely.

Income Statement

Trade Desk shows strong revenue growth with a TTM increase of 4.16% and consistent profitability with a net profit margin of 15.72%. The gross profit margin remains robust at 78.81%, indicating efficient cost management. However, the slight decline in gross profit margin from previous years suggests rising costs or competitive pressures.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.14, indicating low leverage and financial stability. Return on equity is solid at 16.00%, reflecting effective use of equity capital. However, the equity ratio is moderate, suggesting room for improvement in asset management.

Cash Flow

Operating cash flow is strong, with a ratio of 0.29 to net income, indicating good cash generation relative to earnings. However, free cash flow growth has declined by 8.58% in the TTM, which could signal potential challenges in cash flow management or increased capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.79B	2.44B	1.95B	1.58B	1.20B	836.03M
Gross Profit	2.20B	1.97B	1.58B	1.30B	974.91M	657.22M
EBITDA	635.69M	514.66M	280.90M	168.08M	167.04M	172.84M
Net Income	438.58M	393.08M	178.94M	53.38M	137.76M	242.32M
Balance Sheet
Total Assets	5.94B	6.11B	4.89B	4.38B	3.58B	2.75B
Cash, Cash Equivalents and Short-Term Investments	1.45B	1.92B	1.38B	1.45B	958.78M	624.04M
Total Debt	375.98M	312.21M	235.89M	260.96M	284.60M	292.43M
Total Liabilities	3.34B	3.16B	2.72B	2.27B	2.05B	1.74B
Stockholders Equity	2.60B	2.95B	2.16B	2.12B	1.53B	1.01B
Cash Flow
Free Cash Flow	681.80M	632.39M	543.30M	456.85M	318.54M	324.95M
Operating Cash Flow	880.53M	739.46M	598.32M	548.73M	378.51M	405.07M
Investing Cash Flow	-474.11M	-157.51M	-107.59M	-304.37M	-93.64M	-143.27M
Financing Cash Flow	-974.76M	-107.61M	-626.11M	31.99M	31.93M	44.68M

Trade Desk Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 43.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TTD, the sentiment is Negative. The current price of 43.26 is below the 20-day moving average (MA) of 49.94, below the 50-day MA of 49.57, and below the 200-day MA of 65.53, indicating a bearish trend. The MACD of -1.76 indicates Positive momentum. The RSI at 30.96 is Neutral, neither overbought nor oversold. The STOCH value of 9.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TTD.

Trade Desk Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DOCU	72 Outperform	$14.02B	52.58	14.23%	―	8.29%	-71.36%
DDOG	72 Outperform	$66.69B	647.83	3.52%	―	26.63%	-46.13%
TTD	69 Neutral	$21.02B	49.06	16.78%	―	20.82%	41.82%
PUBM	63 Neutral	$338.38M	―	-0.65%	―	3.53%	-109.03%
BILL	61 Neutral	$4.63B	-173.17	0.30%	―	11.63%	50.72%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
DSP	59 Neutral	$541.38M	260.12	5.20%	―	30.92%	―

Trade Desk Corporate Events

Trade Desk’s Earnings Call Highlights Strong Growth

The recent earnings call of Trade Desk painted a positive picture, highlighting strong revenue growth and operational improvements. The company showcased significant product innovations and international expansion, despite facing some macro-economic challenges and competitive pressures. Overall, the sentiment was optimistic, with the company well-positioned for future growth.

The Trade Desk Reports Strong Q3 2025 Results

The Trade Desk, Inc. is a global technology company that provides a platform for buyers of advertising, enabling them to create, manage, and optimize digital advertising campaigns across various formats and devices. Operating within the advertising technology sector, the company is known for its innovative approach to data-driven advertising solutions.

Trade Desk Reports Strong Q3 Revenue Growth

On November 6, 2025, The Trade Desk announced its third-quarter financial results, reporting an 18% year-over-year revenue growth to $739 million, driven by innovations in its Kokai platform. The company also revealed a $500 million increase in its share repurchase program, highlighting its strong financial position and commitment to returning value to shareholders. The Trade Desk’s strategic initiatives, including new product launches and partnerships, reinforce its market leadership and potential for future growth.

The most recent analyst rating on (TTD) stock is a Buy with a $80.00 price target. To see the full list of analyst forecasts on Trade Desk stock, see the TTD Stock Forecast page.

Trade Desk Approves Bylaw Amendments at Special Meeting

On September 16, 2025, Trade Desk held a Special Meeting where stockholders approved significant amendments to the company’s bylaws and articles. The amendments included changing the conversion date of Class B Common Stock to Class A Common Stock to December 22, 2035, and waiving jury trials for internal actions in line with Nevada law updates. The meeting saw a majority of voting power represented, with both proposals receiving approval, although the adjournment proposal was not needed as the first proposal passed.

The most recent analyst rating on (TTD) stock is a Buy with a $88.00 price target. To see the full list of analyst forecasts on Trade Desk stock, see the TTD Stock Forecast page.

Trade Desk’s Earnings Call Highlights Strong Growth and AI Success

The Trade Desk’s recent earnings call conveyed a positive sentiment, highlighting the company’s robust financial performance and strategic growth initiatives. Despite facing challenges from macroeconomic factors and competitive pressures from walled gardens, the company remains optimistic about its future prospects.

The Trade Desk Reports Strong Q2 2025 Results

The Trade Desk, Inc. is a technology company that provides a global platform for buyers of advertising, allowing them to manage and optimize digital advertising campaigns across various formats and devices. The company operates in the digital advertising industry and is known for its innovative use of data and AI to enhance advertising effectiveness.