The Trade Desk, Inc. (TTD)

The Trade Desk stock forecast: buy or sell

The Trade Desk stock outlook

  • After hitting new all-time highs on Friday, The Trade Desk closed at $493.20 skyrocketing a 2.59%
  • The Trade Desk released its financial report on Thursday
  • The price is currently over the upper Bollinger band, which often indicates a short-term correction
  • Needham & Company LLC, Pivotal Research, Royal Bank of Canada and 2 others posted buy ratings for The Trade Desk on Friday, with an average forecast of $542.00
  • On Tuesday broke out above its latest top at $475.67
  • Price is drawing a scaled uptrend since mid-March with higher tops and higher bottoms. Up to date, price marked a 262.65% gain since the beginning of this rally. On Tuesday The Trade Desk broke out above $475.67 giving a buy point
  • The Trade Desk, Inc. operates as a technology company in the United States and internationally.
No ad for you

Disclaimer:
The thoughts given in this post are personal and not recommendations for you to buy or sell shares. The author of this report does not have an understanding of the individual circumstances of the reader, his or her 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 Thoughts are expressed for learning reasons only

The Trade Desk stock chart overview

Should I buy The Trade Desk stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. 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 matches one trading strategy:

Uptrend buy setup

The Trade Desk stock is in an uptrend since in mid-March that so far has marked a gorgeous 263% gain. Price marked a pull back in this uptrend at $404.00 on July 24, and since then it bounced up a 22.08%. Price just broke out above the entry point at $475.67, but it's still eligible. If price goes above $499.45, it would be better to wait to another pullback. If you decide to enter this trade, the suggested stop loss is at $428.10

Buy setupBuy pointStop lossRisk
Uptrend buy setup$475.67$428.1010%
No ad for you

Should I sell The Trade Desk stock?

Knowing when to sell a stock is even more difficult than knowing when to buy it. Much like when we have to buy shares, deciding when is appropiate time to sell is not a fickle decision, and we must follow our own trading style. We like very simple setups to guide us on when is a good moment to sell our shares. Be aware that these setups should not be used for shorting TTD stock

As a rule of thumb, you should not keep a trade that results in losses greater than those expected upon purchase. When to sell your stock 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 green can keep their positions

No ad for you

Analysts' recommendations to buy or sell The Trade Desk stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last month, 6 ratings were published for The Trade Desk

No ad for you

The Trade Desk ratings

Brokerage firmRating
Aug 6th, 2020
Stifel Nicolaus Neutral
Aug 7th, 2020
Needham & Company LLC Strong buy
Aug 7th, 2020
Pivotal Research Strong buy
Aug 7th, 2020
Royal Bank of Canada
Aug 7th, 2020
Stephens
Aug 7th, 2020
Susquehanna Bancshares Buy

Technical analysis

The Trade Desk shares started an uptrend in mid-March, and gained a gorgeous 262.65%. The chart shows higher highs and higher troughs, and along the way provided some buy points for those who wanted to enter. Latest low was on July 24, when price bounced at $404.00. On Tuesday, The Trade Desk broke out above its last top ($475.67) giving a good buying opportunity

TTD at new Highs

The Trade Desk did it again, and hit all-time highs (ATH) on Friday at $510.00. It's the third time in the last 10 sessions, marking an important rally

SMAs overview

Moving averages are tools for traders to detect market momentum. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

Supports and resistances

Investors use supports and resistances as a way to find price points in the stock price action that tend to behave as glass ceiling, preventing the price of shares to move in certain direction. A support level is a level where the price may find support as it falls. This means that the price is more likely to "rebound" this level rather than break through it. Nevertheless, if the price breaks down the support, it will probably continue declining until meeting another support level. On the contrary, resistances are where the price tends to find opposition as it rises. Again, this means that the price is more likely to "bounce off" at this level, and if it finally breaches this level, it will rally more easily until it approaches the next resistance

Price is at highs and there are not upper resistance levels.

The current support levels are:

  • S1: $475.67 (-3.55% below)
  • S2: $404.00 (-18.09% below)
  • S3: $327.35 (-33.63% below)
  • Bollinger bands

    So-called Bollinger bands are a widespread technical strategy created by John Bollinger. Basically, the Bollinger Bands are bands that move around a moving average, varying the distance from the bottom to the top depending on market volatility. They are usually plotted by an interval of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    Price levels both above or below the Bollinger Bands tell us that the price has followed a strong trend that has led to extreme highs or lows. In this case, the price is over the upper band, meaning a near-term correction (at least) until it is below the band

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of stock markets. Its objective is to map the current and previous weakness or strength of a stock or market based on the closing prices of a recent trading period. Like other oscillation indicators, the RSI fluctuates from 0 to 100. The relative strength indicator is one of the best known and most widely used indicators, and it was invented by J. Welles Wilder in 1978

    The RSI dropped below the overbought level of 70 on Thursday after just crossing to the overbough zone for just one day (weak signal). The RSI value on Friday was 67.63

    No ad for you

    Earnings and financials

    The Trade Desk, Inc. (TTD) published quarterly earnings of $0.92 per share, significantly enhancing the Market consensus estimate of $0.17 per share. Estimated revenue was $134.3 million but The Trade Desk highly improved by 100%, reporting $0.00.

    This compares to earnings of $0.95 per share a year ago, so current EPS means a decrease of -3.16%. Looking at revenues, figures skyrocketed a 32.78% compared to $121.0M same quarter 12 months ago. The Trade Desk made three YoY quarterly results in green, improving revenue by 120.69% from $72.8M on 2017-Q2.

    The Trade Desk releases financial report next November. Expected per-share earnings of %s for this quarter is $0.32. If you hold or you are considering buying The Trade Desk stock, be aware that the financial reporting day usually has a higher than usual volatility, and price can soar and sink with exceptionally low liquidity and not respecting your buy/stop-loss orders. You can uncover more information about the earnings call and the earnings reports on the Investor Relations section of its website: http://www.thetradedesk.com.

    No ad for you