Above, we can see that The Trade Desk chart is promising. It has broken out from four years of sideways trading and suggests much higher levels ahead.
This would not be a surprise because The Trade Desk, led by its electrifying founder-CEO, Jeff Green, is an incredible company. In 2021 the company had a 10:1 share split. Adjusted for this split I first recommended the shares in 2018 at $8.2 and for the first time in Quentinvest in 2019 at $12.8. Based on the latter recommendation the shares are up more than 10-fold.
The shares started trading around $2 and subscribers sometimes challenge me on this asking why I waited until the price had risen sharply before recommending them. I am not an analyst, I am a momentum investor. I would love to have recommended them at $2 but then I had no idea they would do so well.
Nor did anyone else; that is why they were $2. The trick is to buy them early in the rise, not right at the beginning. It is those opportunities I am good at spotting.
The growth since 2011 has been staggering.
The company is addressing a massive market undergoing a dramatic transition.
The first stage of the third AI revolution has been mainly about hardware, the compute power to process vast amounts of data. Enablers of this revolution like Nvidia have seen huge share price rises and that process is ongoing.
But increasingly it is software computers, able to help enterprises use this new, incredible AI, which are the hottest stocks.
TTD is huge in connected TV which is Netflix et al.
There is also the global opportunity outside North America.
TTD looks well-placed for a glittering future.
Let me conclude by underlining that taken together, these initiatives along with many others, position the Trade Desk very well for market-leading growth in the years ahead. I believe it is worth noting again, we continue to significantly gain market share. I believe our level of relative outperformance, 27pc revenue growth in the third quarter, is indicative of the value we are delivering to our clients as they deal with an uncertain consumer environment. We continue to sign JBPs [joint business plans]with brands and their agencies at a very strong pace with billions of dollars transacted through these partnerships each year now.
I believe we will look back on 2024 as an inflection point in terms of how advertisers value the premium open Internet driven by CTV and digital audio as a compelling alternative to walled gardens. And I expect advertisers will emerge in 2025, more empowered than ever to drive data-driven precision. As a result, we will continue to gain share.
Jeff Green, CEO, The Trade Desk, Q3 2024, 7 November 2024
Share Recommendations (3 December 2024)
The Trade Desk. TTD
QV Alert – Root Inc; transforming auto insurance
Newsflow Is Always Good When Stocks Are Enjoying A Moment In The Sun
Where We Might Be Going With Powerful AI
