30 Stocks That Should Double in 3 Years

16. Trade Desk Inc. (NASDAQ:TTD)

Number of Hedge Fund Holders: 63

Trade Desk Inc. (NASDAQ:TTD) is a technology company that offers a self-service cloud-based ad-buying platform. This allows buyers to plan, manage, optimize, and measure data-driven digital advertising campaigns across various ad formats and channels. These include video, display, audio, digital-out-of-home, native, and social.

Trade Desk currently manages over $12 billion in ad spend, within a $1 trillion ad industry. The company’s growth is anchored in its AI-powered advertising platform. The Kokai platform is its latest upgrade and enhances precision and value for clients, driving audience expansion. Trade Desk Inc. (NASDAQ:TTD) is now transitioning all clients to the Kokai platform.

The company is driving the adoption of OpenPath for a more efficient supply chain and pursuing Joint Business Plans (JBPs) with major brands and agencies, which outpace its general growth by 50%. In Q4 2024, Trade Desk’s revenue was up 22% year-over-year, with Q1 2025 revenue growth forecasts around 17%. However, on March 18, Justin Patterson, an analyst at KeyBanc, lowered the price target on the stock to $74 from $130 while keeping his Overweight rating.

Rowan Street Capital highlighted the company’s strong fundamental growth and stated the following regarding The Trade Desk, Inc. (NASDAQ:TTD) in its Q4 2024 investor letter:

“The Trade Desk (TTD): Investment Initiated: March 2020

Internal Rate of Return (IRR): 54%

The Trade Desk has been our most successful investment to date. March 2025 will mark five years since we opportunistically initiated our position at a cost basis of $17.40 (split-adjusted). Since then, TTD has appreciated more than sevenfold, delivering an annualized return of approximately 54%.

These exceptional results far outpace the company’s strong fundamental growth, with revenues and earnings compounding at approximately 25% annually over this period (refer to the table below). The primary reason for this outsized return lies in the price at which we were able to acquire TTD during the early days of the pandemic, when market fears briefly drove it down to just 10x revenues. Today, the valuation has expanded significantly to approximately 25x revenues, amplifying our returns…” (Click here to read the full text)