From Nasdaq: 2025-05-13 11:25:00

The Trade Desk (TTD) shares have dropped 32.5% year to date but surged 32.6% post better-than-expected Q1 results. Revenues were up 25%, driven by strong demand trends. However, macro uncertainty may impact ad budgets, posing a challenge for TTD. Investors are advised to evaluate the company’s quarterly performance and long-term prospects.

TTD reported Q1 revenues of $616 million, surpassing guidance. Adjusted EBITDA was $208 million with a 34% margin. Video (including CTV) dominated digital spend, while mobile, display, and audio also contributed. The Kokai platform saw early client adoption, and the Sincera acquisition will enhance data insights. Revenues for Q2 are projected at $682 million.

Macroeconomic uncertainty and trade tensions could pressure TTD’s revenue growth. Intense competition in digital advertising, regulatory scrutiny, and reliance on CTV are concerns. High operating costs and limited international market presence pose challenges. Analysts are bearish on TTD due to downward estimate revisions and expensive valuation, with a Zacks Rank #4 (Sell).

TTD stock’s 32.5% YTD decline is steeper than industry and market peers. Performance lags behind Alphabet, Amazon, and Magnite. TTD trades at a premium valuation, with a forward 12-month Price/Sales of 12.99X versus the industry’s 4.75X. Despite strong Q1 results, headwinds like macro uncertainty, rising costs, and heavy reliance on CTV and North America warrant caution. Consider offloading TTD stock given these factors and the Zacks Rank #4 (Sell) rating.



Read more at Nasdaq: Should You Hold or Sell The Trade Desk Stock Post Q1 Earnings?