The Trade Desk Stock Tripled Last Year. Is It Still a Buy?
2020 was a phenomenal year for advertising technology stocks. The Trade Desk (NASDAQ: TTD), the leading demand-side platform (DSP), racked up a gain of 208%, as the company wowed investors with its ability to deliver strong growth even in one of the worst advertising environments in memory.
The Trade Desk was far from the only winner, however. Magnite (NASDAQ: MGNI), which specializes in helping content publishers manage their inventory, known as a supply side platform, saw its share jump 276% thanks to a surge in the last two months. Shares of Roku (NASDAQ: ROKU), the leading streaming television platform and the owner of Dataxu, another demand-side platform that helps advertise automated campaigns, jumped to finish up 148%. Small-cap player AcuityAds (OTC: ACUI.F) soared nearly 1,000%, in part from excitement around its new user-friendly DSP, illumin.
Going into 2021, investors clearly have high expectations for The Trade Desk. The growth stock now trades at a whopping price-to-sales (P/S) ratio of 49, in league with some of the priciest cloud-computing stocks on the market, and its price-to-earnings (P/E) is also steep at 169. However, 2021 looks set to be one of the best years for the business. Here's why.
Source Fool.com
