Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Hi MM, From memory, you thought TTD was a buy or even strong buy at about USD$80; and had it as as a recent top buy around USD$60. It has been hit particularly hard today. Is this due to concerns around an economic slowdown due to tariffs and consequent decrease in advertising spend, etc? At around USD49, does MM view it as extremely oversold? Or do the Liberation Day tariffs raise concerns that you did not have a week or so ago? Thanks Darren
Hi Darren,
The advertising technology company Trade Desk (TTD US) reported a poor quarterly last month and the stock subsequently fell sharply. However, the last few weeks continued sell-off has been a function of increased recession fears and a plunging market – one of the first things companies dial back in uncertain, potentially tough times is discretionary spending = advertising. Tariffs are certainly not got for TTD, but they are not good for many companies. TTD is a high beta stock, which generally feels the brunt in big risk off moves such as the one we’re seeing, the only slight positive is the $A has now pulled back sharply, cushioning the blow for $AUD domiciled investors holding $US domiciled stocks.
However, at MM we continue to believe the backdrop for digital advertising remains strong, and TTD is a top player in the space, hence we like TTD into current exacerbated weakness.
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