TTD trade ideas
TTD Nearing Support LevelsThis is an update to an earlier post on $TTD. TTD is nearing a support area with 3 different supports and will be interesting to watch. It is approaching the longer term up trend line. Just after that is the shorter term down trend line and under that still lays the 50 day SMA. I'm looking to go long on a confirmed up trend reversal off any of these areas. The first target I see is around $200. If it clears this area I expect to test all time highs.
Comments and input welcome.
TTD going UP from here?Shares of Trade Desk Inc (NASDAQ: TTD) have nosedived 12 percent since Friday morning amid investor concern over Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG) possibly considering restrictions on third-party ad targeting on Chrome.
The investor reaction appears overblown given the company’s solid fundamentals, according to Oppenheimer.
The Analyst
Oppenheimer’s Brian Schwartz maintained an Outperform rating on Trade Desk with an unchanged $210 price target.
The Thesis
Adweek reported Friday that Google was considering restrictions on cookie tracking in Chrome, similar to what Apple Inc. (NASDAQ: AAPL) has done for its Safari browser, Schwartz said in a Wednesday note.
The pressure on Trade Desk’s stock appears excessive, and higher estimates will lend upside to its share price, the analyst said.
Trade Desk’s Safari desktop revenue continued to grow when Apple enacted similar restrictions in the past, Schwartz said. Moreover, the company’s key growth drivers — ConnectedTV, mobile and China — are strengthening and do not use browser cookies, he said.
Trade Desk's fundamentals are solid and it is executing wel, the analyst said, adding that its business momentum continued to be strong in the first quarter.
+22.1% after solid beat, raised 2018 guidanceThe company is now guiding for revenue during the year to increase to at least $433 million. This is up from a previous outlook for full-year revenue of $403 million.
Management expects full-year adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) to climb to $133 million, up from previous guidance for $117 million.
This would put Trade Desk's adjusted EBITDA margin at 30.5%, above previous guidance for an adjusted EBITDA margin of 29%.
www.fool.com
The Trade Desk (NASDAQ:TTD) has jumped 22.1% in after-hours trading following a healthy beat on top and bottom lines in its Q1 earnings where it raised its full-year outlook.
Revenue grew 61% and EBITDA more than tripled, to $18.9M (well above expected $7.8M).
In channel highlights, it noted total mobile (in-app, video and Web) grew 95% Y/Y and increased to 42% of gross spend. Mobile video grew almost 160%, and mobile in-app grew almost 110%.
Customer retention stayed over 95% again.
For Q2, it's still guiding to revenue of $103M (above consensus for $93.1M) and EBITDA of $30M (above expectations for $25.9M).
For the full year, it's raise expectations, guiding to revenue of at least $433M (well above expectations for $403.9M) and EBITDA of about 30.5% of revenue, or $133M (above consensus for $117.9M).
seekingalpha.com
The Trade Desk generated $85.7 million in revenue during the first quarter of 2018, a 61% jump from the same period last year,
Profitability was also up, with net quarterly income reaching $9.1 million, compared to $4.9 million in Q1 2017.
The Trade Desk raised its 2018 revenue forecast to at least $433 million, a $30 million increase from the initial guidance it released in February.
The biggest potential long-term growth driver for The Trade Desk’s business is the convergence of linear television and digital video through connected TV.
adexchanger.com
Trade Desk Rises Sharply on Earnings BeatGuidance is also encouraging, even if it expects things to decelerate in the near term.
The Trade Desk sees total gross spending of at least $3.2 billion in 2019, up at least 36% since the outlay on its platform in 2018.
The Trade Desk sees revenue rising 36% to $637 million for all of 2019 and climbing 35% to $116 million during the seasonally sleepy first quarter.
It sees margins contracting to the point that adjusted EBITDA moves just 14% higher to $182 million this year.
finance.yahoo.com
www.thestreet.com
finance.yahoo.com
1. Revenue up 56%
2. Earnings more than doubled
The reason for the impressive profitability? The Trade Desk's revenue continues to outpace the company's spending. Overall, operating expenses of $111.5 million grew just 52% year over year compared to sales that jumped 56%. As long as The Trade Desk continues to grow revenue faster than costs, profits will continue to soar.
3. Advertising on key channels soared
4. A $725 billion opportunity
5. The future looks bright
TTD will return to rise following false move by sellers.The sellers are panic selling ahead of the earnings reports but this usual move is excessive with many late-comers fleeing their trades at a loss. The price is sure to rebound following the influx of capital into the share following this exaggerated move.
