The Trade Desk (TTD) reported strong results in its latest quarterly release on Tuesday. But despite the latest gains, the shares will likely crash again soon. In particular, high-growth stocks (like The Trade Desk) have rebounded hard since mid-June, but are still down dramatically year-to-date, and Wednesday’s newly released inflation numbers will likely embolden the fed in its fight against inflation. In this report, we review the ugly top-down environment for five top growth stocks that will likely crash again soon, then dig into the details on The Trade Desk in particular and then finally conclude with our strong opinion about investing in The Trade Desk and top growth stocks in general.
The Trade Desk: Growth at an (Un) Reasonable Price?
If you don’t know, The Trade Desk (TTD) is growing rapidly. The company’s self-service software platform (that enables ad agencies and brands to make data-driven ad placements across a variety of mediums) is benefiting dramatically from secular growth in digital ads and Connected TVs. Further, the company’s recent launch of a more secure and effective Unified 2.0 solution (an alternative to cookies) has added to the growth momentum. But is the company’s valuation simply too high? In this report, we review The Trade Desk’s business model, its market opportunity, financials, valuation and risks, and then conclude with our opinion on whether the shares offer an attractive balance between risks and rewards.