In September, Trade Desk decreased by more than 12% following high interest rate fears. Yet, this seems to be a performance driver for this debt-free, high-growth company.
Due to Fed’s hawkish announcement in September, many stocks went down. Trade Desk is no exception either, which could mean that investors may be able to purchase its stock at a discount. In the next sections, we will discuss why you should invest in Trade Desk and what its potential is in the near term.
How & Where to Buy Trade Desk Stock Online
Trade Desk is listed on Nasdaq (TTD) and can be bought with ease after registering with one of the top brokers below:
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What Is Trade Desk?
Trade Desk is a global high-growth technology company. Digital ad buyers use its platform to launch data-driven marketing campaigns on different devices and in different formats.
Should I Buy Trade Desk Today?
Firstly, we should understand what caused the stock to decrease by 12.2% in September – what did the company do wrong? In short, nothing. In fact, Trade Desk reported strong earnings and raised its estimations in August. In normal economic conditions, this would be all we need for a bullish market.
Yet, the Fed’s statement in September caused interest rate fears among investors, pushing all the stock market down. This hurts high-growth stocks like Trade Desk even more, but it may all be down to an irrational behaviour fueled by interest rate fears. This is because higher interest rates actually translate into higher profitability for this company since it doesn’t have any debt, so the interest it earns on its cash assets will be higher.
However, many stocks sold off. One reason is that future earnings mean less in today’s money, since they are discounted at a higher rate. Yet, with a discounted price without any company-specific news, Trade Desk could be a worthy asset for long-term investors seeking bargains.
Trade Desk Price Prediction 2021
Trade Desk has a median price forecast of $93.5 and a high price target of $115. The stock price as of this writing is $70.42, indicating massive potential if the prediction materialises.