1 Surprising Adtech Stock That Could Soar Now
Leading demand-side programmatic-advertising player The Trade Desk (NASDAQ: TTD) managed to surpass consensus revenue and earnings estimates in the third quarter (ending Sept. 30, 2022). That's an impressive feat, considering the slowdown in the advertising industry. While the revenue guidance of at least $490 million and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance of at least $229 million for the fourth quarter is lower than analysts' expectations, it still implies a healthy sequential revenue and adjusted EBITDA growth rate of 24% and 40.5%, respectively.
Despite the stellar numbers, the stock has declined by 44% so far this year. Investors have been shying away from advertising stocks since corporate marketing budgets (including advertising) are the first to be cut during economic slowdowns. The controversy surrounding founder and CEO Jeff Green's stock-based compensation ($830 million in 2021 and $197 million so far this year) is also not helping instill confidence in the investor community.
The burning question: Is The Trade Desk an attractive investment now? Let's assess.
Source Fool.com
