The Trade Desk, Inc. (TTD): A Bull Case Theory

We came across a bullish thesis on The Trade Desk, Inc. on Quality Stocks’ Substack. In this article, we will summarize the bulls’ thesis on TTD. The Trade Desk, Inc.'s share was trading at $31.25 as of January 29th. TTD’s trailing and forward P/E were 36.22 and 24.88, respectively according to Yahoo Finance.

The Trade Desk, Inc. operates as a technology company in the United States and internationally. TTD is facing near-term pressure from slowing digital ad spending, rising competition from major platforms like Google and Amazon, and concerns surrounding its transition to a new system. Operating margins have also been impacted by higher costs as the company continues to invest in technology and growth initiatives.

Despite these challenges, The Trade Desk remains a leader in programmatic advertising, boasting strong client retention and a highly scalable platform. Its long-term investment case is anchored in the secular shift toward data-driven, automated ad buying, where the company is well positioned to capture increasing market share.

For 2025, The Trade Desk is expected to deliver 17% growth with a net profit margin of 14.5%, while trading at a forward P/E of 55.9x. The company’s resilience and market leadership provide multiple entry points for investors, with defined buy zones around the current price, $32, and $18, reflecting different risk/reward profiles. While near-term pressures may weigh on sentiment, the structural growth opportunity in programmatic advertising underpins a compelling long-term thesis, supported by a robust platform, loyal client base, and strategic investments in technology.

This combination positions The Trade Desk to benefit from the ongoing digital transformation in advertising, offering potential upside for investors who can navigate the cyclical headwinds in the sector. Overall, The Trade Desk represents a strategic opportunity to participate in the evolving programmatic ad market, balancing short-term challenges with attractive long-term growth potential.

Previously, we covered a bullish thesis on The Trade Desk, Inc. (TTD) in May 2025, which highlighted its leadership in connected TV, retail media, strong revenue growth, and high customer retention. The stock has depreciated by approximately 43.69% since our coverage due to near-term headwinds. The thesis still stands as TTD remains well-positioned for long-term programmatic advertising growth. Quality Stocks shares a similar perspective but emphasizes near-term pressures.

The Trade Desk, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held TTD at the end of the third quarter which was 60 in the previous quarter. While we acknowledge the potential of TTD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.