Is The Trade Desk (TTD) Still a Worthy Stock Investment?

Saga Partners, an investment management firm, published its second-quarter 2022investor letter – a copy of which can be seen here. During the second quarter of 2022, the Saga Portfolio (“the Portfolio”) declined 56.3% net of fees. This compares to the overall decrease for the S&P 500 Index, including dividends, of 16.1%. The cumulative return since inception on January 1, 2017, for the Saga Portfolio, is -7.3% net of fees compared to the S&P 500 Index of 86.8%. The annualized return since inception for the Saga Portfolio is -1.4% net of fees compared to the S&P 500’s 12.0%. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Saga Partners mentioned  The Trade Desk, Inc. (NASDAQ:TTD) and explained its insights for the company. Founded in 2009, The Trade Desk, Inc. (NASDAQ:TTD) is a California-based digital marketing company with a $32.9 billion market capitalization. The Trade Desk, Inc. (NASDAQ:TTD) delivered a -26.42% return since the beginning of the year, while its 12-month returns are down by -4.80%. The stock closed at $67.43 per share on September 12, 2022.

Here is what Saga Partners has to say about The Trade Desk, Inc. (NASDAQ:TTD) in its Q2 2022 investor letter:

The Portfolio first purchased The Trade Desk in Q4’17. The Trade Desk is a software platform that helps advertisers filter, value, and purchase the supply of digital ad inventory (display, mobile, social, connected TV, connected audio) available across the world. There is a long-term secular trend of more media moving online, providing the advertisers the ability to use data to reach targeted consumers. The Trade Desk provides price discovery for advertisers by using data (programmatically) to value inventory for an advertiser’s specific goals.

In the digital advertising value chain, there is a marketplace where ad inventory is bought and sold. Sellers of ad inventory called sell side platforms (SSPs) run auctions for publisher’s inventory through ad exchanges, selling it to the highest bidder. Buyers of ad inventory, called demand side platforms (DSPs) like the Trade Desk, have to “look” at the auctions being run in order to potentially bid on the inventory for their advertising customers. Programmatic advertising provides the ability for one-to-one targeting using granular data to determine ROI on ad spend…” (Click here to see the full text)

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Our calculations show that The Trade Desk, Inc. (NASDAQ:TTD) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. The Trade Desk, Inc. (NASDAQ:TTD) was in 34 hedge fund portfolios at the end of the second quarter of 2022, compared to 34 funds in the previous quarter. The Trade Desk, Inc. (NASDAQ:TTD) delivered a 48.52% return in the past 3 months.

In July 2022, we also shared another hedge fund’s views on The Trade Desk, Inc. (NASDAQ:TTD) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

Disclosure: None. This article is originally published at Insider Monkey.