Fubotv earnings beat by $0.10, revenue topped estimates
On Monday, BTIG analysts reaffirmed their Buy rating and $142.00 price target for The Trade Desk (NASDAQ:TTD) shares. According to InvestingPro data, analysts’ price targets for TTD range from $57 to $160, with the stock currently trading at $117.29. The company has demonstrated strong market performance, delivering a 64.48% return over the past year. The firm addressed key topics including intraquarter growth trends, early Q1 performance, and the 2025 outlook based on recent advertising checks. The analysts dismissed concerns about a potential deceleration in growth within the quarter, citing no evidence of a post-election downturn or a weak start to the year. They emphasized that the period between the U.S. election and inauguration was positively received by marketers due to lower risks associated with the news cycle.
The Trade Desk’s competitive stance against emerging rival Amazon (NASDAQ:AMZN) as an open web demand-side platform (DSP) was also discussed. BTIG highlighted that while Amazon’s competition should not be underestimated, The Trade Desk has successfully gained market share from Google (NASDAQ:GOOGL)’s DV360 and is well-positioned to compete based on technology, platform capabilities, supply, and pricing. The company’s strong competitive position is reflected in its impressive 81.06% gross profit margin and robust revenue growth of 26.14% over the last twelve months. For deeper insights into TTD’s competitive advantages and financial health metrics, check out the comprehensive research available on InvestingPro.
Regarding Connected TV (CTV), BTIG referenced Trade Desk CEO Jeff Green’s description of 2025 as a "crawling" year for the company as it expands into new inventory sources. Industry conversations suggest that while CTV buyers and personnel acknowledge challenges, there is optimism about Trade Desk’s potential to generate incremental spend and revenue. The analysts project an additional $500 million to $1.1 billion in gross spend, translating to about $100 million to $250 million in incremental revenue for The Trade Desk, assuming a 20% take rate.
The report also touched on the potential of OpenPath and Ventura to unlock inventory aggregation efforts. BTIG analysts believe that most financial models, including their own, already account for an acceleration in CTV growth in 2025, as previously indicated by The Trade Desk management. To surpass current estimates, they estimate that a 10-15% initial penetration of new supply would be necessary. InvestingPro analysis suggests the company is currently overvalued relative to its Fair Value, but maintains strong fundamentals with more cash than debt on its balance sheet and healthy liquidity ratios. Subscribers can access 15+ additional ProTips and detailed growth projections for TTD.
In other recent news, The Trade Desk has been at the center of several developments. The company recently experienced a significant sale of shares by CEO Jeff Green, totaling approximately $17.5 million. This move has prompted some investors to exercise caution, although such sales are often part of a planned diversification strategy.
In the realm of analyst feedback, Truist Securities has maintained a Buy rating on The Trade Desk shares and set a price target of $155. BMO Capital Markets also kept an Outperform rating while raising the price target to $160, reflecting a positive outlook on the company’s performance, especially in the connected TV (CTV) advertising sector.
The Trade Desk has also announced the acquisition of Sincera, a digital advertising data company. This move is expected to enhance programmatic advertising capabilities by providing actionable insights within the advertising industry. The merger is set to conclude in the first quarter of 2025.
Furthermore, Truist Securities updated its outlook on The Trade Desk, raising the price target to $155 from the previous $135, while maintaining a Buy rating on the shares. The adjustment reflects an optimistic view of the company’s long-term growth potential.
These are recent developments and investors are encouraged to keep an eye on the company’s future announcements and earnings reports.
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