Today’s tech stock investors want exposure to the artificial intelligence market. Does The Trade Desk (NASDAQ:TTD) stock meet that requirement? Indeed it does.
The Trade Desk’s management clearly understands the significance of machine learning tech in 2023. All in all, TTD stock gets a solid “B” rating and has the potential to move higher in the coming months.
Just to recap, The Trade Desk offers a cloud-based digital advertising firm. That’s a tough type of business to run during times of high inflation. With that in mind, let’s see how The Trade Desk has performed recently, and then decide whether momentum-focused investors should consider owning the stock now.
TTD Stock Rallies After a Strong Quarterly Report
The Trade Desk released its first-quarter 2023 earnings report on May 10. Since then, TTD stock ran from $65 to $75, and that’s after already rallying since the beginning of the year.
Contrarian investors might be concerned that The Trade Desk’s valuation is over-inflated now. Therefore, we’re hedging our bets today by assigning the stock a “B” rating instead of an “A.”
Yet, the share-price rally could certainly continue on the heels of an impressive quarterly performance from The Trade Desk.
The Trade Desk posted quarterly EPS of 23 cents, which was nearly double the analyst consensus estimate of 12 cents. Not only that, but The Trade Desk’s revenue increased 21% year over year to $382.8 million, beating the analyst calls for revenue of $364.5 million.
On top of all that, The Trade Desk’s customer retention rate exceeded 95% during the first quarter. The Trade Desk performed well even while elevated inflation may have forced some businesses to curtail their digital ad spending.
TTD Leverages the Power of Machine Learning
But again, despite The Trade Desk’s impressive quarterly results, traders surely want to know if the company is using AI technology right now. The answer is definitely yes, as The Trade Desk just launched an AI-powered product called Kokai.
Kokai, according to The Trade Desk, “distributes deep learning algorithms across all aspects of the digital media buying process.” Believe it or not, Kokai has access to over “13 million advertising impressions every second.”
Thus, Kokai can provide users with rich data-driven marketing insights and “serve as an expertly trained co-pilot” for marketers, as The Trade Desk CEO Jeff Greencan put it.
In other words, The Trade Desk isn’t just giving lip service to the AI trend. The company is effectively using AI technology and thereby pushing the envelope in the digital advertising space.
TTD Stock Could Still Have Room to Run
Some people don’t like to buy stocks after they’ve already rallied. If that describes you, then you might not choose to invest in The Trade Desk now.
There’s no denying The Trade Desk’s strong quarterly results. Plus, the company’s AI tech integration should provide a positive catalyst for The Trade Desk. Consequently, TTD stock earns a “B” rating and has the potential to move higher over the coming months.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
