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The Trade Desk
05-02-2019, 01:45 AM. (This post was last modified: 10-02-2019, 11:48 PM by Barefoot.)
Post: #1
The Trade Desk
The Trade Desk Inc is a global technology company based in Ventura, California. It offers brands and media buyers a self-service platform to manage data-driven advertising campaigns. Buyers can create highly personalized ad experiences across various channels, including display, native, video, audio, and social, and on a multitude of devices, including computers, mobile, and TV.
The company was co-founded in 2009 by Jeff Green, the company's chairman and CEO, and Dave Pickles, the chief technology officer.[4][5]
In 2017, revenue rose 52% to $308 million.[4] In September 2018, the firm had a market cap of $6.2 billion.-From Wikipedia

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10-02-2019, 11:28 PM.
Post: #2
RE: The Trading Desk
It's better to change the title of the thread to "The Trade Desk".

Have been invested in it for quite some time (since 2017?). Looks like it is on track to become the third largest player in the ad-tech space. It is also highly profitable, growing both topline and bottom line at 50-60% for the longest time.

But it's current valuation (trailing PE ~100?) doesn't look like one that would interest fellow buddies, hence, never thought of starting a thread here.
“If you buy a business just because it’s undervalued, then you have to worry about selling it when it reaches its intrinsic value. That’s hard. But if you can buy a few great companies, then you can sit on your ass. That’s a good thing.” - Charlie Munger

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10-02-2019, 11:46 PM. (This post was last modified: 10-02-2019, 11:49 PM by Barefoot.)
Post: #3
RE: The Trading Desk
Motley Fool pounded the table on this one. Know that the valuation is high but if the high growth runway is long, it maybe worth it. Happen to believe that bull mode in US stock market is still likely to continue till at least 2022, and the current correction should be about to end, so don't mind putting money into a few good US growth tech stocks like this one and Arista Networks.

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11-02-2019, 11:00 AM.
Post: #4
RE: The Trade Desk
missed this boat. looked at it around 50 but couldnt pull the trigger cos expensive using conventional metrics like pointed out. look where it is now. had a gd education on ad exchanges, dsp asp, doubleclick etc. really liked it.
- profit making
- cash flow positive
- industry growth
- co growing faster than industry
- good glassdoor reviews
- good personal reviews from two ppl i know working in the sg office

https://www.channelnewsasia.com/news/tec...k-11228614

While the number of journalists employed by Australian newspapers fell 20 per cent from 2014 to 2017 as print advertising revenues dwindled, Sims said, Google and Facebook between them captured nearly 70 per cent of all online advertising spend.

"This shift in advertising revenue online, and to digital platforms, has reduced the ability of media businesses to fund news and journalism," Sims said in remarks prepared for delivery to Sydney's International Institute of Communications.

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13-02-2019, 12:16 AM. (This post was last modified: 13-02-2019, 12:19 AM by Wildreamz.)
Post: #5
RE: The Trade Desk
The story is enticing (@BRT sums it up well). TTD is one of (if not), the best pure play ad DSP (demand side platform), based on my rough industry research (glassdoor, quora, reviews etc.). Being the only publicly traded pure-play DSP with access to cheap capital, it is able to outspend their competitors and capture larger percentage of the market over time. This advantage may be critical as the industry is consolidating (https://www.business2community.com/digit...w-02102020). 

Rough Google Trend analysis shows that interest in The Trade Desk worldwide is outpacing other DSPs (https://trends.google.com/trends/explore...azon%20dsp).

But I don't think TTD is a slam dunk just yet. And due to the high valuation (at least, via traditional metrics), I expect the stock price to remain flat-ish for the next 12 month at least, before the company could grow into its valuation. In the mean time, many things can derail the story (regulation, corporate buyout, the rise of a well capitalized competitor, new technology, recession etc.). Risk-reward not there to initiate new position IMO.
“If you buy a business just because it’s undervalued, then you have to worry about selling it when it reaches its intrinsic value. That’s hard. But if you can buy a few great companies, then you can sit on your ass. That’s a good thing.” - Charlie Munger

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