Is TTD a good stock to buy? We came across a bullish thesis on The Trade Desk, Inc. on Chop Wood, Carry Water Investment Journal’s Substack by Alexandru Dragut. In this article, we will summarize the bulls’ thesis on TTD. The Trade Desk, Inc.’s share was trading at $22.38 as of April 15th. TTD’s trailing and forward P/E were 24.87 and 17.89 respectively according to Yahoo Finance.
The Trade Desk, Inc. (TTD) operates a self-service, cloud-based ad-buying platform that enables agencies and brands to execute data-driven campaigns across the open internet, differentiating itself through transparency, independence, and a buy-side-only model that avoids conflicts seen in walled gardens. The company monetizes via platform fees, maintaining a consistent ~20% take rate for nearly a decade, alongside strong gross margins of 78.81% as of early 2026.
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Its evolution from display advertising into high-growth channels like Connected TV (CTV) and retail media has positioned it at the forefront of structural shifts in digital advertising. With over 95% client retention for 11 consecutive years and deep API integrations embedded across major clients, TTD benefits from high switching costs and a scalable data flywheel powered by its AI platform, Kokai. Growth has been substantial, with revenue rising from $113.8 million in 2015 to $2.44 billion in 2024, supported by consistent profitability since 2013 and strong operating leverage.
However, concerns remain around stock-based compensation, which reached 20% of revenue in 2024, diluting true owner earnings despite $868.3 million reported. Competitive and structural risks persist, including potential take-rate compression and the long-term threat of generative AI reducing open internet ad demand.
Nevertheless, TTD’s leadership in UID2 and CTV provides a hedge against these risks. Despite a sharp valuation reset driven by fears of obsolescence, the company’s zero-debt balance sheet, durable growth, and expanding moat suggest it remains a high-quality asset with significant long-term upside potential with ideal buy below $20 per share.
Previously, we covered a bullish thesis on The Trade Desk, Inc. (TTD) by FckYouMoney in May 2025, which highlighted market overreaction to weak guidance, strong retention, and long-term growth from CTV and UID2. TTD’s stock price has depreciated by approximately 59.67% since our coverage. Alexandru Dragut shares a similar view but emphasizes on moat durability, operating leverage, and emerging risks from stock-based compensation and AI disruption.
finance.yahoo.com
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