Was Jim Cramer Right About The Trade Desk, Inc. (TTD)?

We recently published a list of Was Jim Cramer Right About These 12 Stocks? In this article, we are going to take a look at where The Trade Desk, Inc. (NASDAQ:TTD) stands against other stocks that Jim Cramer discusses.

Back in 2024, on May 16, Mad Money’s Jim Cramer spotlighted The Trade Desk, Inc. (NASDAQ:TTD) in response to its new partnership with Netflix, highlighting the company’s strong fundamentals, record quarter, and strategic role as a growing third power in digital advertising:

“I’ve been following this company since it came public in late 2016, recommending it repeatedly over the years to you […] Investors seized on The Trade Desk involvement as particularly important because this is a proven outfit with a good track record […] Long story short, The Trade Desk is on — it’s just in fuego, inking multiple new deals that could be hugely beneficial to the numbers in the quarters or years to come […] And I know it’s moved up, but I’m telling you — this is a winner. And if it comes down, you can buy […]  I like The Trade Desk because it’s one of the best pure plays on a huge secular theme — the continued movement of advertising dollars from legacy media channels toward digital… It’s a picks-and-shovels play for effective online advertising… That’s why I think, if it comes back at all — and it could — The Trade Desk can keep working its way higher.”

The stock disappointed after Cramer’s endorsement, falling 18.11% and failing to hold investor momentum.

A large array of computer screens and tech equipment representing the technology company’s self-service cloud-based platform.

The Trade Desk, Inc. (NASDAQ:TTD) has faltered lately as digital ad spending growth slows and competition intensifies across streaming and connected TV. Explaining the stock’s downfall, here’s what Cramer said on May 15:

“You made the right move. Now let me tell you something. They had a self-inflicted issue. In other words, they had a problem, they made a mistake… It was like they were doing a new software that didn’t work initially, and the stock just got crushed. It went all the way down from like $120, down to $60. But I will tell you, it actually went down to $42 at one point in April, that I think all the problems are fixed, and all the things you said that are good, they’re happening. I like your call, I think you’re right. I would actually buy more.”

Overall, TTD ranks 3rd on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of TTD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TTD and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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