Stock Market Today, Nov. 10: Trade Desk Jumps After Q3 Results Show Revenue Topped Estimates
Trade Desk (NASDAQ:TTD), a cloud-based programmatic ad-buying platform for data-driven campaigns, closed at $15.42, up 3.28%. Volatility followed Q3 results, and investors are assessing Q4 guidance, restructuring savings, and AI-driven efficiency efforts.
Trading volume reached 64.2 million shares, coming in about 189% above its three-month average of 22.2 million shares. Trade Desk IPO’d in 2016 and has grown 412% since going public.
How the markets moved today
The S&P 500 (SNPINDEX:^GSPC) fell 0.38% to 7,521, and the Nasdaq Composite (NASDAQINDEX:^IXIC) fell 0.74% to 25,066. Within digital advertising technology, sector rivals Magnite closed at $28.52, down 1.79%, while PubMatic closed at $16.95, down 10.90%, highlighting mixed trading across ad-tech names.
What this means for investors
A long-awaited turnaround appears to be taking hold for The Trade Desk. Investors have anticipated it to some degree, as Trade Desk shares have rallied 25.5% since the start of November.
The company didn’t disappoint, helping maintain that momentum today and reversing an initial drop in early trading. Revenue of about $736 million topped estimates, beating internal expectations. That was still a slight drop compared to the prior-year period, though, highlighting the need for more progress.
Stronger-than-expected Q4 guidance still won’t represent year-over-year growth. But management signaled long-term confidence by increasing its buyback authorization by $731 million. With $269 million remaining in the existing plan, the company now has a total repurchase capacity of $1 billion.
Investors should still consider Trade Desk a risky investment, but the company does seem to have formed a base in the business, potentially paving the way for future growth.
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