Key Stats for Trade Desk Stock
- Price change for Trade Desk: 18%
- $TTD Share Price as of Mar. 05: $30
- 52-Week High: $91
- $TTD Stock Price Target: $32
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What Happened?
Trade Desk (TTD) stock surged roughly 18% on Thursday after two major developments hit the market on the same day.
- First, CEO Jeff Green disclosed he bought six million shares of Trade Desk stock between March 2 and March 4, paying between $23.49 and $25.08 per share. The total purchase came to roughly $148 million. That kind of insider buying sends a clear signal that the CEO believes the stock is undervalued.
- Second, Rolling Stone reported that OpenAI is in early discussions about a potential advertising partnership with The Trade Desk. The talks are part of a broader pilot where OpenAI is exploring ways to build out an ad business. OpenAI has already begun testing ads inside ChatGPT for free and entry-level subscribers in the US.
- If a deal moves forward, OpenAI could use The Trade Desk’s demand-side platform to buy and manage digital ads at scale.
- That would let OpenAI build an advertising business quickly without having to develop the underlying technology from scratch.
- Advertising is becoming a priority for OpenAI as it looks to generate more revenue from its roughly 920 million users.
- The company reportedly aims to double its consumer revenue from ChatGPT to around $17 billion in 2026.
The news came at a good time. Trade Desk stock had been under serious pressure heading into Thursday. The stock is down about 34% year-to-date and roughly 63% over the past 12 months, far worse than the S&P 500, which gained about 19% over the same period.
Management guided for adjusted EBITDA of around $195 million, well below Wall Street’s estimate of $223 million. That sent the stock down about 15% in a single session despite a solid Q4 report, where revenue grew 14% to $847 million.
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What the Market Is Telling Us About Trade Desk Stock
Trade Desk stock has been beaten down badly, and Thursday’s rally reflects just how much good news the stock needed.
A $148 million CEO buy and a potential OpenAI partnership arriving on the same day is a rare combination.
That said, analyst Tom White from DA Davidson cautioned that it is still too early to size the OpenAI opportunity for The Trade Desk.
Analysts currently have an average price target of $35.46 on the stock, with 16 buys, 14 holds, and 2 sells.
The OpenAI partnership is promising, but it remains in early stages.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
