Trade Desk Stock Forecast 2023: Will Trade Desk Reach $1000?
Trade Desk Stock Forecast 2023 is $48.3
Latest TTD Stock Price
Performance over the last 12 Months
- 1 Month: -12.8%
- 6 Months: -7.3%
- 1 year: -47.8%
It has been a difficult year for the advertising industry. Big companies like Meta Platforms and Alphabet Inc felt the heat for reduced spending by advertisers in 2022 as fears of impending recessions grip the market. Trade Desk Inc is also one of the ad-tech companies which felt the ripple effect of the macroeconomic situation and fell by 40% in the last year. But the right question is whether the stock has bottomed and whether is it the right time to pick the stock. Will Trade Desk reach $1000 anytime in the future?
TTD Stock Forecast 2023: Analysts
|Average TTD Stock Predictions for the next 12 Months||$48.3|
|New Street Research||$43|
TTD Stock Price Prediction for the next 3 years (Aggregated)
Trade Desk TTD Price Prediction 2023 is $59.6
Trade Desk TTD Price Prediction 2024 is $71.6
Trade Desk TTD Price Prediction 2025 is $77.7
TTD Trade Forecast 2023: Technical (Weekly)
- RSI: Sell
- Stoch RSI: Oversold
- MACD: Sell
- Moving Averages: Sell
- Overall: Sell
Trade Desk Forecast Today: Buy or Sell
|1. Market's Wisdom||Positive|
|1a. Market Data||Positive|
|1b. Technical Recommendation||Neutral|
|2. Crowd's Wisdom||Partially Negative|
|2a. Social Media Buzz||Lower|
|2b. Social Media Sentiment||Neutral|
Trade Desk Forecast: Revenues over the years
- 2018: $0.5B
- 2019: $0.66B
- 2020: $0.84B
- 2021: $1.2B
Factors to look out for Trade Desk Inc
Better Q3 results and Q4 forecast: – There were modest hopes for the results of Trade Desk Inc after disappointing results of Meta Platforms and Alphabet Inc. But the company surprised all with better-than-expected topline and bottom-line growth. In Q3, ad-tech company revenue rose 31% YoY to $395 million. Also, its net adjusted income improved by 45% to $129 million or $0.26 per share. Both were above analysts’ expectations. In addition, the company has Q4 guidance of $490 million which represents 32% full-year revenue expansion.
Growth Opportunities for the future: – The main reason for the better-than-expected results from Trade Desk lies in its business model. It operates the world’s largest independent demand-side platform (DSP) for digital ads. Its only goal is to help advertisers to find places to purchase ad inventory which is different from Alphabet to convince advertisers to buy inventory from a specific platform.
Trade Desk expects three catalysts to propel its future growth. The company has adopted Solimar- an AI-powered platform to focus more on first-party data for advertisers. It will also help advertisers to protect from the privacy rule update by Apple in iOS. Similarly, OpenPath is a new feature that will bypass sell-side platforms (SSPs) like Magnite and connect advertisers directly to publishers. In addition, there is ongoing expansion of the connected TV (CTV) advertising market as more and more streaming services launch ad-supported tiers.
Considering the above factors, it is prudent to predict that Trade Desk is expected to surprise investors with amazing growth numbers in the coming quarters.
A look at Valuations for the Stock
The only possible negative point with Trade Desk is its “rich valuations”. It trades at 13 times next year’s sales and 34 times its adjusted EBITDA. Its peer, Magnite trades at just 3 times next year’s sales and 8 times adjusted EBITDA.
Trade Desk earnings per share (EPS) is expected to touch $2.06 by 2025 from $0.69 reported in 2020 and $0.91 in 2021. It is expected to grow at a CAGR of 24.45%. Assuming a more optimistic growth if the macroeconomic headwinds improve, 30% CAGR growth is on the cards. EPS is expected to be $9.51 per share by end of 2030.
Similarly, revenue is expected to touch $2.94 billion by 2025 at a CAGR of 28.59 and is expected to touch $11.52 billion by 2030. The total outstanding shares at present are 489.52 million. Hence, revenue per share by 2030 is expected to be 23.53. It trades at price to sales ratio of 17.52- and the five-year median price is 25. So, 2030, the Trade Desk share is expected to touch $588 by 2030.
Also Read: TTD Stock Split
Will Trade Desk Stock Reach $1000
To reach $1000 TTD will need to rise 25x the current earnings. At the current pace of growth, that will take about 13 years. It could be faster if there was a big acquisition or if there was another Liquidity event that was witnessed between 2020 and 2021.
Trade Desk has fared well in a tough advertising market since the start of 2022. Now, the market is on the verge of improvement and hence, it is expected to even do better in the coming quarters or years. Connected Tv and other tailwinds will support the company. Although, valuations are on the upper and that is what is asked of a better-performing business to own.
Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.