“Is This a 90% Discount or a Ticking Time Bomb?”
TTD is undervalued (fair value $31 vs current $15) warranting a buy rating, though conviction is lowered to medium due to competitive threats and slowing growth.
The Trade Desk announced revenue growth of only 3% in the last quarter, reaching $715 million. This was a significant slowdown compared to the company's multi-year history of achieving double-digit revenue growth.
Furthermore, management expects the situation to worsen, forecasting that revenues in the third quarter will only reach $650 million . To make matters worse, the management team stated that it is losing a clear vision of future sales in the coming quarters, as it seems to me that customers are hesitant to enter into agreements with "The Trade Desk".