Shares of Trade Desk rose on Wednesday after the advertising technology company's third-quarter earnings beat on Monday prompted several analysts to raise their price targets on the stock.
After Monday's market close, Trade Desk reported third-quarter adjusted earnings of 33 cents a share, beating Wall Street expectations. Revenue fell 0.5% to $736 million, but beat projections for $650.9 million.
That prompted at least 14 analysts who cover the stock to raise their price targets, including Evercore ISI to $18, from $14 previously, according to FactSet.
Susquehanna Financial Group raised its price target to $17, from $14; Wells Fargo Securities raised its price target to $15, from $12; Piper Sandler upped its target to $16, from $14; BMO Capital Markets raised its price to $16, from $15; and Jefferies raised its price to $14, from $12.
Trade Desk stock closed up 3.6% at $15.98 on Wednesday, notching its highest close since Aug. 6, after closing up 3.3% at $15.42 on Tuesday, according to Dow Jones Market Data.
Investors have been looking for signs that a turnaround could revive Trade Desk's struggling advertising business.
For its current fourth quarter, Trade Desk says it expects revenue of "at least $755 million," up 10% year over year, and adjusted earnings before interest, taxes, depreciation, and amortization of "at least $280 million," up 45%. That was above consensus projections of $688 million for fourth-quarter revenue and $192 million in adjusted Ebitda.
StoneX analysts have described 2026 as a "lost year" for Trade Desk. They said the company's recovery hinges partly on whether it can withstand pricing pressure from Amazon while winning back advertising spending and finding additional ways to cut costs.
The stock is up 30% this month, but down 57.9% through Wednesday's close and down 63.5% over the past 12 months.
StoneX analysts wrote in a Monday note that Trade Desk had approximately $269 million available and authorized for repurchases as of Sept. 30. The company's board of directors have approved an additional $731 million under its share repurchase program, bringing the total amount available for future repurchases of its outstanding Class A common stock to $1 billion.
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