Underperforming Software Stock Ripe for Downgrades

TTD is down over 40% since the start of the year

facebook twitter linkedin


The Trade Desk, Inc. (NASDAQ:TTD) is an American multinational tech company that specializes in online advertising. TTD offers marketing automation technologies, products, and services, designed to personalize digital content delivery to users. Through their self-service, cloud-based platform, ad buyers can create, manage, and optimize digital advertising campaigns across advertising formats and devices. 

Trade Desk stock has decreased just 10% year-over-year and TTD is currently trading down 52% since peaking at an all-time high of $114.09 back in November of 2021. Additionally, shares of TTD have dropped 44% year-to-date and are down 11% just over the past month. However, Trade Desk stock has recovered a significant 39% since bottoming at a 52-week low of $39.39 near the end of May.

Still, Trade Desk stock continues to offer an extremely high valuation at a price-earnings ratio of 270.35 and a price-sales ratio of 19.46, meaning TTD could drop significantly more if the market continues its risk-off sentiment. Nonetheless, Trade Desk stock also has a forward price-earnings ratio of 54.05, which is still a high figure but represents a much more attractive value and signals high estimates for the company’s future growth.

There looks to be amble room for downgrades however, should the influx of bullish sentiment begin to unwind. Heading into Friday's trading, 12 of the 15 covering brokerages sport a "buy" or "strong buy" recommendation. 

The good news for prospective options traders is Trade Desk stock tends to outperform options traders' volatility expectations. This is per the equity's Schaeffer's Volatility Scorecard (SVS) of 89 (out of 100).

 
 
 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Best stocks for October and worst stocks for October
 


 


 
Special Offers from Schaeffer's Trading Partners