Trade Desk (NASDAQ: TTD) stock price plunged sharply after hitting an all-time high of $290. The shares slid below the physiological level of $200 despite reporting stronger than expected revenue and earnings for the third quarter.
Analysts say the significant share price drop in the past couple of months is presenting a buying opportunity for long-term investors.
Trade Desk stock price is currently trading around $190, down almost $100 from an all-time high. Fortunately, shares are still up 67% since the beginning of this year. Analysts believe Q3 revenue and earnings could help in ending the bearish trend. In addition, substantial revenue and earnings growth from previous periods is the evidence of strong future fundamentals.
Q3 Revenue and Earnings Growth Could Stop the Bearish Trend
Its third-quarter record revenue of $164 million increased by 38% from the previous year period. The company claims that its focus on Omnichannel is working. This is because the industry is steadily shifting toward transparency and programmatic buying.
“The world’s leading brands and agencies are increasingly using our platform to apply data-driven strategies to drive precision and value across their campaigns,” said Jeff Green, founder, and CEO of The Trade Desk.
Its adjusted EBITDA stood at $47.8 million in Q3, up from $36 million in the previous year quarter. Its diluted earnings per share came in at $0.40 per share.
Outlook Upgrade Could Add to Trade Desk Stock Price
The company increased its outlook for the fourth quarter and full-year after solid third-quarter results. It now expects fourth-quarter revenue to hit a new record level of $213 million and adjusted EBITDA at $78.5 million.
The full-year revenue is likely to stand around $658 million compared to the previous guidance of $653 million. The company says they are focusing on revenue growth – which will help it in enhancing the profitability in the coming days. Overall, future fundamentals are likely to offer support to the Trade Desk stock price.