Betting against TheTradeDesk even amid ad market weakness doesn’t sound like a good idea, and here’s why

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2023 has been a challenging year for the digital ads industry. High inflation and multi-decade high interest rates have reduced consumer buying power, reducing the demand for digital ads. TheTradeDesk ($TTD), the leading independent demand-side platform, hasn’t been immune to this general market weakness.

In its most recent earnings report, TTD beat earnings estimates but gave a Q4 revenue outlook that missed estimates, and the stock tumbled more than 20%. However, this was an overreaction, and now TTD has almost fully recovered from this drop.

Despite the weakness in the digital ads space, betting against TTD, one of the leading ad tech companies in the world, is not a good idea. TTD continues to grow rapidly and very profitably, gaining market share in a massive industry that is expected to grow significantly. The stock will probably remain highly volatile for the foreseeable future, given the unpredictability of the digital ad market, but the stock is a good buy at current prices. Let’s take a deeper dive.

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