Hi Investors and Traders,
today let's have a look to The Trade Desk or TTD, which is a digital ad leader in the DSP Ad Space (Demand Side Platform).
This company has been a 'Market-Darling' in 2020 and provided huge returns of up to 500% within a 12 month time frame.
Right now after having 'returned to earth' it is very interesting again.
(1) Fundamentals
TTD operates a self-service cloud-based platform that allows buyers to create, manage and optimize data-driven digital advertising campaigns in various ad channels like display, video and audio and on various devices such as Computers, Mobile Devices and Connected TV. It always had sky-high valuations due to its great metrics (having beaten expectations Quarter after Quarter) with EV/Sales of up to 45! Nevertheless today, after a tough correction period and nearly 40% off it's ATH expected forward EV/Sales is 25, which is still high, but regarding their very strong FCF production, elevated Growth Profit Margins of around 79% and solid bottom line profits, this has become again a rough Diamond. Besides already being the leader in its space, on top of that TTD has been expanding its business to China from which I expect huge returns in the near future. Biggest risk right now is its struggle transitioning from cookies to ID 2.0 in the ad space, but as it has a very savvy CEO I still expect a bright future for this enterprise.
(2) Technicals
Last week TTD made a 10:1 Split, which in my opinion was a clever step forward as it took down its share price from around $500 to $62 (right now). The Chart shows that TTD has been flat for a while moving in between two yellow lines and therefore before taking decision to buy (or not) it should leave the channel with a meaningful VOLUME INCREASE. Right now the average daily trading Volume moves around 8M shares and this figure should at least double to confirm the new trend. Investors and Traders that are willing to buy in should consider a time frame of up to 6 - 12 months until TTD retests its ATH around $100 (or before Split $1000).
Right now have no position in TTD (sold last year much too early!!) but I will be averaging in (2-3 steps) as soon as TTD confirms the possible break-out.
If you liked this analysis leave a comment and/or give it a like, many thanks and good luck to all!
today let's have a look to The Trade Desk or TTD, which is a digital ad leader in the DSP Ad Space (Demand Side Platform).
This company has been a 'Market-Darling' in 2020 and provided huge returns of up to 500% within a 12 month time frame.
Right now after having 'returned to earth' it is very interesting again.
(1) Fundamentals
TTD operates a self-service cloud-based platform that allows buyers to create, manage and optimize data-driven digital advertising campaigns in various ad channels like display, video and audio and on various devices such as Computers, Mobile Devices and Connected TV. It always had sky-high valuations due to its great metrics (having beaten expectations Quarter after Quarter) with EV/Sales of up to 45! Nevertheless today, after a tough correction period and nearly 40% off it's ATH expected forward EV/Sales is 25, which is still high, but regarding their very strong FCF production, elevated Growth Profit Margins of around 79% and solid bottom line profits, this has become again a rough Diamond. Besides already being the leader in its space, on top of that TTD has been expanding its business to China from which I expect huge returns in the near future. Biggest risk right now is its struggle transitioning from cookies to ID 2.0 in the ad space, but as it has a very savvy CEO I still expect a bright future for this enterprise.
(2) Technicals
Last week TTD made a 10:1 Split, which in my opinion was a clever step forward as it took down its share price from around $500 to $62 (right now). The Chart shows that TTD has been flat for a while moving in between two yellow lines and therefore before taking decision to buy (or not) it should leave the channel with a meaningful VOLUME INCREASE. Right now the average daily trading Volume moves around 8M shares and this figure should at least double to confirm the new trend. Investors and Traders that are willing to buy in should consider a time frame of up to 6 - 12 months until TTD retests its ATH around $100 (or before Split $1000).
Right now have no position in TTD (sold last year much too early!!) but I will be averaging in (2-3 steps) as soon as TTD confirms the possible break-out.
If you liked this analysis leave a comment and/or give it a like, many thanks and good luck to all!