The Trade Desk Inc (TTD) $82 Buy On Declines
Trade Alert: Bought TTD at $81.50 Bought 20% of total will keep accumulating.
Positives
Trade Desk is growing revenues at 22-23% and should do so for the next 3-5 years.
Cash Flow generation is excellent with margins of 30% because of the massive SBC as is adjusted operating income.
It is the largest DSP (Demand Side Platform) for the Ad-tech industry by a mile and pretty much partners with everybody in the industry, with strong footholds in all the segments.
Advertising for the 2024 election should give it decent tailwind,
Negatives
Overpriced at 16x sales, no GAAP profitability and unlikely for a while given the SBC, which will keep a lid on the multiple.
Posted on Reddit (Investments) Trade Desk (TTD) is worth buying on declines
Positives
- Trade Desk $TTD is growing revenues at 22-23% and should do so for the next 3-5 years.
- Cash Flow generation is excellent with margins of 30% because of the massive SBC as is adjusted operating income.
- It is the largest DSP (Demand Side Platform) for the Ad-tech industry by a mile and pretty much partners with everybody in the industry, with strong footholds in all the segments.
- Advertising for the 2024 election should give it a decent tailwind.
- Connected or Smart TV’s should be a strong growth catalyst.
- Advertisers will look for other solutions since cookies are getting deprecated and Trade Desk should be a major solution provider.
Negatives Valuation risk at 16x sales, no GAAP profitability and unlikely for a while given the SBC, which will keep a lid on the multiple.
I’ve started buying around $84 and will keep adding on declines.