The Trade Desk, Inc. (TTD): A Bull Case Theory

We came across a bullish thesis on The Trade Desk, Inc. on Value investing subreddit’s Substack by ksing_king. In this article, we will summarize the bulls’ thesis on TTD. The Trade Desk, Inc.’s share was trading at $88.33 as of August 7^th. TTD’s trailing and forward P/E were 107.72 and 83.33 respectively according to Yahoo Finance.

The Trade Desk (TTD), recently added to the S&P 500 in July 2025, experienced a sharp 30% after-hours stock decline following a disappointing Q2 earnings call. While revenue and EBITDA marginally beat expectations at ~$694M and ~$279M respectively, the market reacted negatively to soft Q3 guidance, which projected revenue of $717M and EBITDA of $277M—barely above consensus. The surprise resignation of long-time CFO Laura Schenkein, despite the immediate appointment of an internal successor, added to investor unease.

This volatility follows a broader 25% YTD decline tied to restructuring efforts and initial investor skepticism over TTD’s new AI-driven platform, Kokai. Yet, beneath the headline risk lies a potentially compelling GARP (growth at a reasonable price) opportunity. Despite elevated valuation metrics, TTD is expected to grow revenues 15–20% annually, supported by its narrow moat in programmatic advertising, particularly on the demand-side platform (DSP). Industry dynamics may further strengthen TTD’s positioning—especially if regulatory actions force ad giants like Google to separate supply and demand functions, leveling the playing field.

The firm enjoys a 95% customer retention rate, ~80% gross margins, and operating margins that have grown from 10% to 17%, with room to reach 20–25% over the next decade. While stock-based compensation remains high—especially for CEO Jeff Green, whose incentives are tied to long-term share price appreciation—his 5%+ ownership aligns him closely with shareholders. Overall, while not a deep value play, TTD’s fundamentals and optionality suggest it could warrant a small, high-conviction position in a diversified portfolio.

Previously, we covered a bullish thesis on The Trade Desk, Inc. (TTD) by FckYouMoney in May 2025, which highlighted strong retention, secular ad tailwinds, and undervaluation. The company’s stock has appreciated ~59% since. The thesis still stands as long-term fundamentals remain intact. Ksing_king shares a similar view but emphasizes recent volatility and regulatory shifts as key catalysts.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None.