Trade Desk (NASDAQ:TTD) Stock Jumps 12.3% Following Better-Than-Expected Earnings

The Trade Desk (NASDAQ:TTD) was up 12.3% on Monday following a stronger than expected earnings report. The stock traded as high as $14.34 and last traded at $14.5210. 6,592,118 shares were traded during trading, a decline of 67% from the average daily volume of 19,795,355 shares. The stock had previously closed at $12.93.

The technology company reported $0.33 earnings per share for the quarter, beating analysts’ consensus estimates of $0.04 by $0.29. The business had revenue of $735.97 million for the quarter, compared to analyst estimates of $650.93 million. Trade Desk had a net margin of 11.03% and a return on equity of 14.64%. The company’s revenue was down .5% on a year-over-year basis. During the same period last year, the business earned $0.45 EPS.

Key Trade Desk News

Here are the key news stories impacting Trade Desk this week:

• Positive Sentiment: Q3 revenue was about $736 million, ahead of estimates, and adjusted EPS of $0.33 also topped expectations. Management forecast Q4 revenue of $755 million, above the roughly $692 million analyst consensus. Trade Desk Q3 Earnings & Revenues Beat Estimates, Down Y/Y
• Positive Sentiment: The company plans to cut about 15% of its workforce, targeting more than $100 million in gross savings in 2027, and expanded its share-repurchase authorization by $731 million. These steps may support efficiency and shareholder returns. Trade Desk: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Unusually high call-option buying suggests some traders are positioning for further gains, though options activity is not a guarantee of future performance. Trade Desk Stock Sees Heavy Call Option Buying
• Neutral Sentiment: DA Davidson initiated coverage with a Neutral rating, reflecting a cautious stance despite the earnings beat. Trade Desk Stock Rated Neutral in New Coverage at DA Davidson
• Negative Sentiment: Underlying results remain pressured: revenue slipped 0.5% year over year and quarterly profit fell sharply. Analysts also cited competitive headwinds, while sluggish growth and execution remain concerns. Trade Desk Faces Competitive Headwinds Despite Political Ad Boost
• Negative Sentiment: Analyst views are mixed-to-cautious: Citi maintained a Sell rating despite raising its target to $12, below the cited share price. The Trade Desk: Rating Downgrade

Analyst Ratings Changes

Several brokerages have recently weighed in on TTD. Wells Fargo & Company set a $12.00 target price on Trade Desk and gave the stock an “equal weight” rating in a research report on Friday, August 7th. HSBC cut shares of Trade Desk from a “hold” rating to a “reduce” rating and set a $10.00 price objective on the stock. in a report on Monday, August 10th. Evercore set a $14.00 price objective on shares of Trade Desk in a research report on Tuesday, September 8th. UBS Group restated a “buy” rating and issued a $19.00 target price (up from $15.00) on shares of Trade Desk in a report on Tuesday. Finally, Wall Street Zen downgraded shares of Trade Desk from a “hold” rating to a “sell” rating in a research report on Saturday, August 8th. Four investment analysts have rated the stock with a Buy rating, twenty-six have assigned a Hold rating and nine have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Reduce” and an average price target of $18.66.

Institutional Trading of Trade Desk

Several institutional investors and hedge funds have recently bought and sold shares of the business. Tema ETFs LLC grew its position in Trade Desk by 9.5% during the 2nd quarter. Tema ETFs LLC now owns 8,360 shares of the technology company’s stock worth $151,000 after purchasing an additional 725 shares during the last quarter. Sunbelt Securities Inc. boosted its stake in shares of Trade Desk by 4.1% during the first quarter. Sunbelt Securities Inc. now owns 24,976 shares of the technology company’s stock worth $567,000 after buying an additional 983 shares during the period. EverSource Wealth Advisors LLC grew its holdings in shares of Trade Desk by 159.1% during the first quarter. EverSource Wealth Advisors LLC now owns 2,031 shares of the technology company’s stock worth $46,000 after buying an additional 1,247 shares during the last quarter. New Mexico Educational Retirement Board increased its position in Trade Desk by 6.3% in the 2nd quarter. New Mexico Educational Retirement Board now owns 21,900 shares of the technology company’s stock valued at $396,000 after acquiring an additional 1,300 shares during the period. Finally, Checchi Capital Advisers LLC raised its stake in Trade Desk by 7.6% during the 3rd quarter. Checchi Capital Advisers LLC now owns 21,293 shares of the technology company’s stock valued at $259,000 after acquiring an additional 1,495 shares during the last quarter. Hedge funds and other institutional investors own 67.77% of the company’s stock.

Trade Desk Stock Performance

The business has a 50-day simple moving average of $13.13 and a two-hundred day simple moving average of $19.41. The company has a market capitalization of $7.25 billion, a price-to-earnings ratio of 22.35, a PEG ratio of 1.61 and a beta of 0.98.

Trade Desk Company Profile

The Trade Desk, Inc. provides a technology platform that helps advertisers and advertising agencies plan, buy, and measure digital advertising. Its self-service platform uses automated, data-driven tools to help clients purchase advertising inventory across channels such as connected TV, mobile, audio, and display. The company also offers tools for campaign management, audience targeting, measurement, and access to data and advertising inventory. Its platform is designed to help clients manage campaigns across multiple media channels and publishers.