The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 66 | 18.6x | 20.8x | Top tier | |
Growth | 67 | 15.5% | 6.1% | Top tier | |
Quality | 92 | 18.9% | 6.6% | Top tier | |
Safety | 79 | — | 0.7x | Top tier | |
Capital Return | 70 | — | 2.02% | Top tier | |
Momentum | 1 | -72.4% | 4.1% | Bottom tier | |
Sentiment | 53 | 21 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
The Trade Desk operates as a leading, independent programmatic digital advertising buying platform, providing advertisers and agencies with advanced technologies to manage their campaigns across the open internet, away from the constraints of closed platforms. The company generates its revenue by charging a percentage of the total advertising spend that passes through its platform, with a strong focus on connected TV, audio media, and retail media channels. The company distinguishes itself with its objective stance, as it does not own any media or advertising inventory of its own, which prevents conflicts of interest and makes it a trusted partner for major global brands.
In the first quarter of fiscal year 2026, the company demonstrated strong financial performance despite macroeconomic challenges, with revenues reaching $688.9 million, an increase of 12% year-over-year. The company achieved a gross profit of $506.9 million and a net income of $40.0 million, translating to earnings per share of $0.08. It also recorded an adjusted EBITDA of $206 million with a strong margin of 30%. In terms of the advertising mix, video advertising, including connected TV, led with a percentage in the low fifties, followed by mobile advertising in the high twenties, while audio advertising accounted for about 6% and was the fastest-growing channel during this quarter.
The stock is currently trading in a range that reflects strong growth expectations against macroeconomic challenges, and must be evaluated considering the analyst consensus that recommends a buy with an average price target of $26.98. With a high price target of $53 and a low target of $11.6, investors need to balance the current valuation with management's commitment to achieving an adjusted EBITDA margin of 40% for 2026. Determining whether the stock trades at a discount or a premium depends on the company's ability to navigate the short-term slowdown and achieve the analysts' positive targets.
Figures in the text are as of 2026-07-20; the live price is shown at the top of the page.
The second-quarter 2026 guidance, which anticipates revenues of at least $750 million, was impacted by macroeconomic pressures and geopolitical instability. Management noted weakness specifically in consumer packaged goods sectors such as home and garden and food and beverage, as well as the impact of tariffs on the automotive sector. Despite these challenges, the company expects to generate adjusted EBITDA of approximately $260 million, reflecting the resilience of its financial business model.
The company is adopting an advanced approach by focusing on agentic AI as a tool to radically optimize advertising buying processes. It recently announced a strategic partnership with Stagwell agency to create and modify advertising campaigns using these advanced technologies. This move aims to help advertisers process millions of ad opportunities per second and make more accurate and effective pricing and targeting decisions without extensive manual intervention.
The video segment, which includes connected TV, represents the largest portion of the company's business, accounting for a percentage in the low fifties of total revenue in the first quarter of 2026. The company benefits from deep partnerships with premium publishers like Disney, NBCU, and Netflix, who are adopting bidding-based advertising models. This ongoing shift from traditional linear television to open digital platforms enhances the company's ability to capture a larger share of global advertising budgets.
Automated analysis for informational purposes only — not investment advice.
The company launched the Audience Unlimited product to enhance advertisers' ability to leverage massive retail data seamlessly and efficiently across various channels. In a recent test conducted by a leading travel brand, using this product resulted in a 30% reduction in CPM and a 38% decrease in data costs. Most importantly, it achieved a 2.7x increase in the conversion rate, proving the immense value of objective data in improving advertising performance and reducing manual effort.