What Happened?
Shares of advertising software maker The Trade Desk (NASDAQ: TTD) jumped 3.1% in the morning session after the stock rebounded following a significant drop in the previous week. The positive movement was partly fueled by Cathie Wood's ARK Invest, which had been buying up shares of The Trade Desk, demonstrating a bullish long-term outlook despite the recent downturn. This institutional support and a belief in the company's long-term growth potential in the digital advertising space likely contributed to the stock's recovery.
After the initial pop the shares cooled down to $55.18, up 1.7% from previous close.
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What Is The Market Telling Us
The Trade Desk’s shares are very volatile and have had 23 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock dropped 39% on the news that the company released its second-quarter earnings report, which, despite beating revenue expectations, was overshadowed by in-line third-quarter guidance and the announcement of a CFO departure. Further,. CEO Jeff Green said that "from a macro standpoint, some of the world's largest brands are absolutely facing pressure and some amount of uncertainty". This added more uncertainty to the near-term performance of TTD.
The Trade Desk is down 53.1% since the beginning of the year, and at $55.18 per share, it is trading 60.5% below its 52-week high of $139.51 from December 2024. Investors who bought $1,000 worth of The Trade Desk’s shares 5 years ago would now be looking at an investment worth $1,238.
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