Trade Desk Stock Forecast 2023: Will Trade Desk Reach $1000?

Latest TTD Stock Price

TTD Stock Forecast 2023: Latest news

  • The Trade Desk is scheduled to release its second-quarter 2023 results on August 9th.
  • The economic concerns are easing following remarks from US Federal Reserve Chair Jerome Powell last month, indicating that the central bank’s staff no longer forecasts a recession. This optimistic development appears to be revitalizing the advertising industry. Notably, both Meta (META) and Alphabet, the parent company of Google (GOOGL), have demonstrated robust growth in advertising revenues in their recent earnings reports. This positive trend is anticipated to extend to The Trade Desk as well.

The Trade Desk is an American multinational technology company that focuses on real-time programmatic marketing automation technologies. Their products and services are designed to enable personalized delivery of digital content to users. The company is headquartered in Ventura, California. The Trade Desk has gained prominence as a leading platform in the advertising technology industry, offering solutions for data-driven advertising campaigns across various digital channels.

TTD Stock Forecast 2023: Analysts

Average TTD Stock Predictions for the next 12 Months$92.6
Morgan Stanley$97.5
RBC Capital$85

TTD Stock Price Prediction for the next 3 years (Aggregated)

  • Trade Desk TTD Price Prediction 2023 is $69.5
  • Trade Desk TTD Price Prediction 2024 is $80.0
  • Trade Desk TTD Price Prediction 2025 is $90.5

Trade Desk Forecast Today: Buy or Sell

UTC: Nov 30th, 2023 12:07 AM
Overall OutlookBearish
1. Market's WisdomNeutral
1a. Market DataNeutral
1b. Technical RecommendationNeutral
2. Crowd's WisdomBearish
2a. Social Media BuzzLower
2b. Social Media SentimentLower

Trade Desk Earnings

(USD)Mar 2023Dec 2022Sep 2022Jun 2022
Net income9.33M71.19M15.87M-19.07M
Diluted EPS0.020.150.03-0.04
Net profit margin2.44%14.51%4.02%-5.06%
Operating income-23.31M100.16M28.8M1.74M
Net change in cash-137.8M35.85M61.97M88.46M
Cost of revenue84.87M79.62M70.12M67.49M

Trade Desk Forecast: Revenues over the years

  • 2018: $0.5B
  • 2019: $0.66B
  • 2020: $0.84B
  • 2021: $1.2B
  • 2022:$1.48B
  • 2023: $382.8 M**

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 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.

Will Trade Desk Stock Reach $1000

*Source: Tradingview

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 the 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 were 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.

-Vineet Agarwal

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.

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