The Trade Desk (NASDAQ:TTD) has seen a significant 40% decline in its stock price in 2025, dropping to around $70, largely due to internal restructuring and slow adoption of its AI platform, Kokai. Despite this setback, a thorough analysis suggests the stock may be an attractive buy, with minimal long-term concerns regarding its operational strength and financial health.
Key financial metrics show that TTD’s price-to-sales ratio stands at 13.4, significantly higher than the S&P 500’s 3.1. The company’s revenue has grown at an average rate of 25.8% over the past three years, and its net income margin is 16.0%. TTD’s balance sheet also appears strong, with a debt-to-equity ratio of just 1.0% compared to the S&P 500’s 19.4%. Despite its high valuation relative to the market, the average analyst price target for TTD is $86, indicating a potential upside of over 25% from current levels.
[As of June 25, 2025] The Trade Desk’s market capitalization is $35 billion, and it has reported operating income of $453 million in the last four quarters, resulting in a 17.6% operating margin.
