The Trade Desk (NASDAQ: TTD) has been off to the races so far in 2023, driven higher by a resurgence in technology stocks. Shares of the digital advertising specialist are up 75% so far this year, which is five times the increase of the S&P 500. The results come in stark contrast to its performance last year when the stock cratered 51%. 

There's little question that the beginning of a recovery in advertising has helped fuel its rise. It's worth noting, however, that even in the face of the stiffest economic headwinds in more than a decade, The Trade Desk continued to generate year-over-year growth, even as its rivals faltered. This suggests that the company is well positioned to ride the market rebound higher, even as it gains market share at the expense of the competition.

What does this mean for those who missed out on The Trade Desk's significant move higher? Should they buy the stock now in anticipation of another leg up or put off buying because of its pricey valuation and uncertainty about whether the rebound in the digital advertising market will continue? Let's take a step back to see what the evidence tells us.

Continue reading

Source Fool.com