2Semana·

Does The Trade Desk look like a failing business model to you?

The share $TTD (-0,08 %) has been in free fall since the last earnings and is approaching the worst drawdown in its history.

But how are things going operationally?

Sales are still rising strongly, albeit more slowly than in previous years (growth downturn is now being fed through)
Robust gross margins
Rising free cash flows
SBC is high, but showing downward trend (Dec-22 still at 26% of sales, now at 17%)
No debt and >$1.9bn cash
...

Valuation: EV/Gross Profit at the lowest level since 2018

Your opinion: Trap or opportunity?

9 Comentarios

Jan@Barrd

2Semana

They have delivered 33 quarters in a row. Now they haven't once and then there's the bad sentiment on top of that. I think this is a good entry point and will place the first tranche.

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Marc@DerAzubi

2Semana

@Barrd at least wait until a small bottom has formed on a daily basis... we currently only have a break of the downtrend in the minute chart and that is of no significance for long-term entries.

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Jan@Barrd

2Semana

@DerAzubi that in any case! I meant more that I see it as a good opportunity now. If it goes down any further, perfect then I'll get it even cheaper 😂
But thanks for the tip!

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Lord P.@lordprettylambo

2Semana

Opportunity. The only 2 questions: 1) Where is the bottom? 2) What is the fair valuation for future growth?

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Memo0606@Memo0606

2Semana

got in at 70€
thinking about buying more
great contribution

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Nobody@Nobody_123

2Semana

First of all, I think your overview is really good... everything essential to the point.

But that was also such an "internet fomo" investment for me, for example 😔
I'm still really getting to grips with how exactly the business model works...

Can any of you explain it?

P.s. I got out at 114 euros with 70% plus, after I still couldn't do anything with them and also didn't feel like dealing with it, e.g. to top up etc....

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Usuario eliminado

2Semana

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Nobody@Nobody_123

2Semana

@user35903002213 apart from the specific designation of the winners and losers (because we don't know who will be on top in 10 years), I'm with you... I somehow feel more comfortable with Google than TradeDesk

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The W.@thewolfofallstreetz

2Semana

@user35903002213 Why do you think TTD is a loser in the advertising market? Can you please explain this in more detail?

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