Key Points
The Trade Desk (NASDAQ: TTD) has seen its stock decline nearly 70% over the past five years and is currently trading near a multi-year low. Despite generating revenue growth at a CAGR of 28% from 2020 to 2025, the company is now facing macroeconomic challenges in the advertising market. Analysts project revenue and adjusted EBITDA growth rates of about 11% from 2025 to 2028, driven by its connected TV (CTV) segment and new AI tools.
The Trade Desk’s enterprise value stands at $9.6 billion, with an adjusted EBITDA multiple of just 7 times, suggesting it may be undervalued. Recent developments include ongoing discussions with OpenAI regarding advertising within ChatGPT, reflecting an expansion into a more diversified adtech model amidst competition from major players like Meta and Google.
