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The Trade Desk Inc Class A

TTD: XNAS (USA)

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Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$81.00	Blzd	Fdcfrqzj

The Trade Desk Earnings: Smart TV and Retail Media Demand Still Increasing, but Guidance Disappoints

Nov 10, 2023

The Trade Desk reported another strong quarter beating management’s expectations on the top- and bottom line. Fourth-quarter revenue guidance was weaker than we anticipated and we believe the firm is either too cautious or may be facing some pressure on take rates. We did not make significant adjustments to our model and our revenue projection remains slightly above the firm’s guidance. We are maintaining our $48 fair value estimate, which represents more than 9 times and 20 times our 2024 sales and adjusted EBITDA estimates, respectively. We continue to view the shares of no-moat The Trade Desk, which are trading at sales and adjusted EBITDA multiples of 15 and 38, respectively, as overvalued.

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