Trade Desk Inc. made a dramatic comeback after being hammered earlier this year. Following a disappointing Q4 earnings report—its first revenue miss in 33 quarters—the stock plunged over 69% from its highs. But as the saying goes, volatility breeds opportunity.
With a strong Q1 earnings release and broader market tailwinds, TTD rallied 18.6% and 11.77% over two consecutive trading days, gaining 43% in just a week.
Some forward-thinking investors capitalized early — especially those using options to amplify their returns. Here are a few highlights from the community:
🎉 Huge congrats to @Stormytw for locking in $9493 profits on $Trade Desk Inc.(TTD)$.
He shared:
TTD consistently pounded the name on this stock and it shot up so fast. Should have added even more.
🎉 Huge congrats to @Rich001 for securing $1022 profits on $Trade Desk Inc.(TTD)$.
🎉 Huge congrats to @Star9811 for achieving an impressive 282.92% return by buying $Trade Desk Inc.(TTD)$ call options.
What’s Driving the Rally?
Back in February, TTD posted Q4 and FY results, reporting revenue of $741 million — missing analyst expectations of $759 million. The market reaction was harsh: the stock plunged 32.98% and continued to slide in the following weeks.
But Q1 2025 earnings turned the tide.
Key Financial Highlights – Q1 2025
Revenue: $616 million, up 25% YoY from $491 million in Q1 2024.
Operating Expenses: Up 21%, reflecting healthy reinvestment for future growth.
GAAP Net Income: Rose 65% to $50.7 million (vs. $31.7M a year ago).
Adjusted EBITDA: $208 million, up 28% YoY.
EBITDA Margin: Increased from 33% to 34%, signaling strong operational efficiency.
Customer Retention Rate: Remained above 95%, consistent with the past 11 years.
Balance Sheet Strength:
Liquid Assets: $4.8 billion
Total Liabilities: $3 billion
Free Cash Flow & Net Income: Both positive, minimizing the need for shareholder dilution.
Share Buybacks:
Repurchased $386 million in shares last quarter, reducing share count by ~1%.
Still authorized to buy back an additional $631 million, which could further reduce float and boost EPS.
Outlook:
For Q2 2025, the company projects 17% YoY revenue growth — and historically, TTD tends to beat expectations. Adjusted EBITDA guidance is $259 million, a 59% YoY increase.
Technical Analysis: Reversal in Motion?
From a technical perspective, TTD appears to have rebuilt its base. The April low retested support levels from 2022 and 2023. Since then, aided by earnings, repurchases, and momentum, trading volume has surged.
It has reclaimed support around $76, and bullish momentum looks strong.
📈 Can it push toward the next key resistance — the 200-day moving average around $98?
📈 Will the gap eventually be filled before Q3?
What’s your take? Are you riding the TTD rebound or staying cautious?
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