The Trade Desk stock: buy or sell?
Updated on:
Dec 1st, 2020
2
The Trade Desk stock brief
- The Trade Desk slided a -1.21% after making all-time highs on Tuesday
- Rosenblatt Securities published a neutral rating for The Trade Desk on Tuesday, with a target of $730.00
- The Trade Desk, Inc. operates as a technology company in the United States and internationally.
Should I buy The Trade Desk stock?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $TTD stock a buy?
Currently, The Trade Desk stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean $TTD will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems
Should I sell The Trade Desk stock?
Do you know when is it time to sell The Trade Desk?. Much like when we have to buy shares, determining when is the best time to sell is not a random decision, and we must adhere our own trading style. We like very simple strategies to guide us on when is a good moment to sell our shares. Be aware that these strategies should not be used for selling short The Trade Desk stock
A guiding principle is that you must never mantain an open trade that generates losses greater than those expected by the time of the buy. The timing to sell shares should always be dictated by the stop-loss (automatic or manual)
Is it time to sell The Trade Desk stock?
In the current situation of The Trade Desk there is not any eligible sell setup, so The Trade Desk stock holders with operations in profit can keep their positions
The Trade Desk ratings
In the last month, 8 ratings were published for The Trade Desk
| Brokerage firm | Rating |
|---|---|
| Nov 4th, 2020 | |
| Oppenheimer | Buy |
| Stifel Nicolaus | Neutral |
| Nov 6th, 2020 | |
| Royal Bank of Canada | |
| Truist | Neutral |
| Nov 10th, 2020 | |
| Smith Barney Citigroup | Neutral |
| Nov 19th, 2020 | |
| Berenberg Bank | |
| Nov 23rd, 2020 | |
| Needham & Company LLC | |
| Dec 1st, 2020 | |
| Rosenblatt Securities | Neutral |
The Trade Desk stock analysis
Since last September, The Trade Desk has been drawing an uptrend that by now marked an amazing 117.89%. The chart shows higher tops and bottoms, and along the way gave very few entry points for those who wanted to trade in. Latest low was in early November, when price bounced at $543.46. In early November, The Trade Desk broke out above its last top ($675.00) giving a good buy point that resulted in a 31.87% profit
$TTD at new All-time Highs
On Tuesday, The Trade Desk reached new all-time highs (ATH) again at $905.00. It's the fourth time in the last 10 sessions, marking an important rally
SMAs overview
Supports and resistances
Price is at all-time highs and there are not upper resistance levels.
The current supports are:
Bollinger bands
Relative strength index
Broke through the overbought line Tuesday, marking a value of 71.95. The fact that the value is in the overbought zone does not in any way imply a sell point, as stock price can be in the overvalued zone for many, many weeks and may continue to gain
The Trade Desk stock price history
The Trade Desk IPO was on Sep 21st, 2016 priced at $28.75 per share1. Since then, TTD stock surged by 2,996.10%, with an average of 749.03% per year. If you had invested $1,000USD in The Trade Desk stock on the IPO, it would be valued $30,961.04 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for The Trade Desk stock
How much a stock will be priced tomorrow or next week is quite unpredictable. However, many stock price forecasts are published every day by banks, financial institutions and independent analysts.
Along with buy or sell recommendations, brokerage institutions release their price estimates based on the stock price action and the company fundamental data. Most of these estimates follow the publication of new financial data by the company, and many times. If you are a small investor you should not invest based on these price targets.
The average price target for The Trade Desk stock calculated from the table below is $743.50. The Trade Desk closed at $890.13 on Tuesday, that is a 19.72% than the predicted price.
| Brokerage firm | Price target |
|---|---|
| Nov 4th, 2020 | |
| Oppenheimer | $530.00 → $610.00 |
| Stifel Nicolaus | $420.00 → $500.00 |
| Nov 6th, 2020 | |
| Royal Bank of Canada | $510.00 → $715.00 |
| Truist | $450.00 → $730.00 |
| Nov 10th, 2020 | |
| Smith Barney Citigroup | $510.00 → $760.00 |
| Nov 19th, 2020 | |
| Berenberg Bank | $903.00 |
| Nov 23rd, 2020 | |
| Needham & Company LLC | $750.00 → $1,000.00 |
| Dec 1st, 2020 | |
| Rosenblatt Securities | $440.00 → $730.00 |
Earnings and financials
In early November, The Trade Desk ($TTD) hosted the shareholders event and posted the report. The Trade Desk posted earnings of $1.27 per share on sales of $216.1 million. The consensus earnings estimate was $0.42 per share on revenue of $180.2 million.
Same quarter one year ago, reported EPS was $0.75, so current EPS means an improvement of 69.33%. Looking at revenues, figures skyrocketed a 31.61% compared to $1.6B same quarter a year ago.The Trade Desk ($TTD) is hosting the quarterly earnings call next February. Expected for this quarter is $1.83, compared to $1.27 that was reported for Q3.
The Trade Desk competitors
The Trade Desk belongs to the Technology sector and the Software—Application industry, which contain 115 industry peers.
The following are some of The Trade Desk major competitors:
| Company | Market cap | Rating | Bullish ratings1 |
|---|---|---|---|
| The Trade Desk ($TTD) | $39.6B | Buy | 3 |
| Salesforce.com ($CRM) | $224.2B | Buy | 9 |
| SAP SE ADS ($SAP) | $140.1B | Neutral | 0 |
| Shopify ($SHOP) | $117.6B | | 1 |
| ServiceNow ($NOW) | $102.9B | Buy | 2 |
| Intuit ($INTU) | $91.0B | Buy | 6 |
| Uber ($UBER) | $89.5B | | 14 |
1 In the last 30 days.
The Trade Desk performance
To better understand The Trade Desk stock performance you must compare its gains with other related stocks in same sector or industry.. For The Trade Desk, the benchmark is made against Salesforce.com, SAP SE ADS, Shopify, ServiceNow, Intuit and Uber.
| Company | 1m | 3m | 6m |
|---|---|---|---|
| The Trade Desk ($TTD) | 55.70% | 73.80% | 153.60% |
| Salesforce.com ($CRM) | 2.60% | -14.90% | 37.90% |
| SAP SE ADS ($SAP) | 12.20% | -26.90% | -8.00% |
| Shopify ($SHOP) | 14.40% | -6.40% | 39.90% |
| ServiceNow ($NOW) | 8.10% | 7.90% | 39.90% |
| Intuit ($INTU) | 12.30% | 2.50% | 24.80% |
| Uber ($UBER) | 46.40% | 48.50% | 37.20% |
Important:
The thoughts published in this post are personal and not recommendations for you to buy or sell stocks. The author of this article does not have an understanding of the individual conditions of the reader, his or her own finances or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are provided for learning reasons onlyThe Trade Desk summary
| Tuesday, December 1st, 2020 | |
|---|---|
| Open | $904.06 |
| Close | $890.13 |
| Day range | $875.27 - $905 |
| Previous close | $901.07 |
| Session gain | -1.21% |
| Average true range | $44.77 |
| 50d mov avg | $650.13 |
| 100d mov avg | $551.21 |
| 200d mov avg | $420.21 |
| Earnings date | February 25th, 2021 |