Today’s trade desk
As of 05/23/2025, 04:00 PM Eastern
- 52 weeks range
- $42.96
▼
$141.53
- P/E ratio
- 94.73
- Price target
- $97.12
After posting the worst revenue report ever in the fourth quarter of 2024, trade desk NASDAQ: TTD I cried out in the first quarter of 2025. The 2024 telecom services company’s final report missed internal expectations for revenue for the first time in 33 quarters. Overall, it was the first time that Trade Desk missed these expectations in its lifetime as a public company. I’ve never seen it be a market for generations, Trade Desk stocks plummeted 33% One day after reporting.
However, the company did not turn this disappointment into a first quarter pattern. The shares have reached almost 19% after the company’s latest release May 8th. As of closure on May 22, Trade Desk recovered 64% since its 52-week lows finally hit early April.
So, what was so great about Trade Desk’s latest quarter? Can this stock recovery continue? In stock yet Most of all time traded almost half It has reached November 2024 and indicates that even greater benefits may be occurring.
TTD: Business breakdown and Q4 struggle
For those who are unfamiliar, Trade Desk is an advertising technology (ADTECH) company. Essentially, the software helps advertisers manage their marketing campaigns. Using AI, we can show these advertisers ads in the best place and help them maximize their ad spend returns.
It analyzes a huge amount of data and targets potential customers who are most likely to buy a company’s products.
Within the advertising ecosystem, Trade Desk focuses primarily on connected TV (CTV), also known as streaming. However, the company’s The platform is omnichannel. This allows advertisers to connect with potential customers through a variety of media types. company It shows its existence In these areas By Partner Sing On both Netflix NASDAQ: NFLX Spotify Technology NYSE: Spot.
The main issue with the trade desk in the fourth quarter came from the deployment of Kokai’s company, the next generation of advertising technology platform. In the fourth quarter, the company focused on fixing Kokai’s structural problems. This has slowed the adoption of the platform during the quarter. This is the end The company missed the prediction.
However, the opposite was true in the first quarter.
Kokai in Trade Desk flips the script
Today we’re trading desk stock forecasts
$97.12
31.44% upsideMedium purchase
Based on 32 analyst ratings
| Current price | $73.89 |
|---|---|
| High prediction | $155.00 |
| Average forecast | $97.12 |
| Low prediction | $57.00 |
Details on trading desk stock forecasts
In Q1, the trade desk crushed estimates at both the top and bottom. The company’s revenue growth I got it at 25%very much Over 17% growth Wall Street was predicted. Adjusted earnings per share (EPS) also rose 27%, but Wall Street was looking for a near 4% drop.
An 82 basis point increase in adjusted revenues at the trade desk before interest, tax, depreciation, and amortization (EBITDA) margin helped. Wall Street predicted that this figure would fall below 26%. The company’s full-year revenues and EBITDA guidance also stood ahead of expectations.
Much of this success was due to the adoption of Kokai in the first quarter. The company noted that about two-thirds of its customers have moved to Kokai. This was “before planned.” As mentioned in the fourth quarter, Trade Desk expects all customers to move to Kokai by the end of 2025.
Trade Desk also shared a very important metric on how Kokai is driving improved client outcomes. Compared to previous platform Solimar, the cost of clients getting new customers has decreased by 20%. Additionally, the cost of reaching unique people with ads has been reduced by more than 42%. Kokai also used 30% more data points when assessing how well ads work.
Overall, all of these metrics show how Kokai helps maximize returns on ad spending, making it much more likely that clients will use it. Customer satisfaction is ultimately demonstrated by the fact that the company’s retention rate remains above 95%, as it has been on the 11th consecutive year.
TTD can benefit the great long term as CTV spending appears to overtake tradition
Overall, the successful outcomes Trade Desk is driving for marketers are extremely difficult to deny. Furthermore, the advertising shift costs traditional television to CTV. Emarketer finds it $29 billion in advertising spending was sent to CTV in 2024compared to traditional television, it costs almost $60 billion. This is less than 33% of CTV. They hope that this gap will continue to narrow. This is a huge long-term tailwind that allows trade desks to benefit a lot. These factors make Trade Desk seem ready to go on a long-term success path.
You’ll want to hear this before considering a trading desk.
MarketBeat tracks the top rated and best-performing research analysts on Wall Street, as well as stocks they recommend to their clients every day. MarketBeat quietly whispered to clients before the broader market emerged, identifying five stocks to buy now…and no trade desks were on the list.
Trade Desk currently has a medium buy rating among analysts, but top rated analysts believe these five stocks are better buys.
Here we show 5 stocks
Are you thinking about investing in meta, roblox, or unity? Before making an investment, enter your email to learn what Streetwise investors need to know about the metaverse and open markets.
