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Is TTD Stock Ready for a Turnaround This Earnings Season?
The Trade Desk (TTD) has been a hot topic among investors recently, especially with its upcoming Q4 earnings announcement set for February 12, 2025. As a prominent player in the advertising technology sector, the performance of TTD during this earnings season could signal critical movements for its stock price and overall market sentiment. But what should investors expect?
Leading up to the earnings call, market analysis indicates mixed signals. The stock has displayed a bearish trend, characterized by pink and purple candles suggesting a potential downturn. However, encouraging signs are emerging from supporting indicators, where the Moving Average Convergence Divergence (MACD) has just turned higher, indicating a potential buy signal. Additionally, strength in stochastic indicators suggests there might be an upside ahead.
Key Financial Metrics
In the last quarter, TTD reported a revenue of $628 million, beating analysts’ expectations by 1.2%. This figure represented an impressive year-on-year growth of 27.3%. However, analysts noted a significant miss in billings estimates and had concerns about the revenue guidance for the upcoming quarter.
Expectations are high for the upcoming earnings, with analysts predicting revenue growth of approximately 25.4% year-on-year to $759.5 million and adjusted earnings of about $0.57 per share. This growth trajectory is essential for TTD to regain momentum, particularly as it has missed Wall Street revenue estimates three times in the last two years.
Following the trend of its competitors, it’s crucial to look at the broader industry context. For example, LiveRamp and Shopify have demonstrated growths of 12.4% and 31.2% respectively for their recent quarters, reflecting positive sentiment and strong performance in the advertising and marketing software segment. It is clear that recent developments in the sector are contributing to a favorable outlook for TTD if it can deliver positive results.
The Future for TTD Stock
With the average analyst price target at $135.42, compared to its current share price of $121.61, there seems to be a perceived upside potential as TTD approaches its earnings call. Investors are cautiously optimistic, especially given the higher trading volumes despite the recent bearish trends. The trade volume during down sessions has been elevated, which could suggest a hesitancy to fully commit to the stock without clearer signals of recovery.
Given the fluctuating dynamics and rising concerns, TTD seems poised for a crucial test this earnings season. Investors are advised to keep a close eye on the earnings outcome and market reaction, as these will largely dictate the stock’s future trajectory. If the earnings are positively received, we could be looking at a strong rebound towards previous highs around $138. However, consolidation at current levels may be necessary before any significant upward movement.
Conclusion
In conclusion, while TTD has been facing some headwinds, the upcoming earnings release could be a turning point. With supportive technical indicators and a strong performance from peers in the industry, the stage is set for potential upside. Investors should prepare for volatility as the market digests the news, and stay tuned for the post-earnings analysis to gauge the next steps for TTD.
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