{"id":41092,"date":"2025-06-27T11:35:29","date_gmt":"2025-06-27T11:35:29","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/06\/27\/from-best-to-worst-why-trade-desk-stock-has-crashed-and-what-next-2\/"},"modified":"2025-06-27T11:35:29","modified_gmt":"2025-06-27T11:35:29","slug":"from-best-to-worst-why-trade-desk-stock-has-crashed-and-what-next-2","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/06\/27\/from-best-to-worst-why-trade-desk-stock-has-crashed-and-what-next-2\/","title":{"rendered":"From best to worst: Why Trade Desk stock has crashed and what next"},"content":{"rendered":"
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The Trade Desk stock price has moved from the best-performing company in the Nasdaq 100 Index in 2024 into the worst. It has crashed by 42% this year and by 50% from its highest point this year. This crash has brought its market capitalization from nearly $70 billion in November to $33.43 billion today. <\/p>\n

Why The Trade Desk stock has crashed <\/h2>\n

The Trade Desk stock price has crashed this year<\/a>, erasing most of the gains made last year when it was the best-performing company in the Nasdaq 100 Index. <\/p>\n

This retreat is likely because of its valuation concerns, as its market capitalization jumped to nearly $70 billion in 2024, a big number for a company that made over $2.4 billion in revenue and a net profit of $393 million last year.<\/p>\n

These numbers meant that the company\u2019s price-to-earnings multiple jumped to a peak of 225 last year. That multiple means that, assuming constant growth rate, the company would take about 225 years to break even.<\/p>\n

Its PE multiple was higher than most companies, including the wildly popular companies like NVIDIA, Microsoft, and Netflix. It is common for a highly overvalued company to go through a valuation reset after going parabolic over time.<\/p>\n

The Trade Desk is still a highly overvalued company since it has a trailing twelve-month (TTM) P\/E ratio of 83 and a forward multiple of 38. <\/p>\n

SaaS companies are often valued using the rule-of-40 method, which involves comparing its revenue growth and margins. In TTD\u2019s case, its forward revenue growth is about 20%, while its net profit margin is 8%, giving it a metric of 26%. This makes it highly overvalued. <\/p>\n

The silver lining is that when using the free cash flow margin of 26, the company has a rule-of-40 metric of 46, which is a good one.<\/p>\n

Growth concerns remain<\/h2>\n

The Trade Desk stock price has also crashed as concerns about its growth considering that the TV advertising industry is slowing. <\/p>\n

The most recent results showed that The Trade Desk made $616 million in the first quarter, a big increase from $491 million a year earlier. Its net income jumped from $32 million to $51 million.<\/p>\n

Wall Street analysts anticipate<\/a> that The Trade Desk\u2019s revenue will rise by 17% this quarter to $685 million. It will then grow by 13.95% in Q3 to $715 million. <\/p>\n

The annual revenue is expected to come in at $2.86 billion, up by 16.8% from a year earlier. Therefore, there are concerns that the company\u2019s growth trajectory is losing steam. <\/p>\n

TTD stock price analysis<\/h2>\n
<\/figure>\n

The Trade Desk stock | Source: TradingView<\/a><\/p>\n

The daily chart shows that the Trade Desk share price crashed and formed a big down-gap in February when it published its earnings. It then continued its strong downtrend and bottomed at $42.98 in April. <\/p>\n

The stock has now bounced back and is trading at $68. It has also formed a bullish flag pattern, comprising of a vertical line and a descending channel. A bullish flag is one of the most bullish continuation patterns in technical analysis.<\/p>\n

Therefore, it is likely that the Trade Desk stock price will continue soaring, with the next point to watch being at $80.<\/p>\n

The post From best to worst: Why Trade Desk stock has crashed and what next<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

The Trade Desk stock price has moved from the best-performing company in the Nasdaq 100 Index in 2024 into the worst. It has crashed by 42% this year and by 50% from its highest point this year. This crash has brought its market capitalization from nearly $70 billion in November to $33.43 billion today.  Why <\/p>\n","protected":false},"author":1,"featured_media":41093,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-41092","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/41092","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=41092"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/41092\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/41093"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=41092"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=41092"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=41092"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}