Is The Trade Desk (TTD) a Buy in 2025? Stock Forecast & Growth Potential

For those that are following the progress of our growth stocks challenge, today marks the end of Week 8 so it is that time again to add one stock to our list. This week choice goes for The Trade Desk Inc (NASDAQ: TTD), a leader in programmatic advertising.

With digital advertising expected to reach $1.2 trillion by 2030, The Trade Desk is well-positioned for long-term success. But after a recent earnings miss, should investors still consider TTD a strong buy?

In this article, we’ll analyse The Trade Desk’s stock forecast, financial performance, price targets, and future prospects to determine whether it’s a smart investment in 2025 and beyond.

Just before we go deep into the analysis, we are running in parallel the dividend stocks challenge where we have already announced this week choice with a nice high dividend yield. Now, time to focus again on The Trade Desk Inc.

What Does The Trade Desk (TTD) Do?

The Trade Desk is a technology company that provides a demand-side platform (DSP) for digital advertising. Unlike traditional advertising models, programmatic advertising uses AI and data analytics to automate and optimise ad placements in real time.

Brands and ad agencies use The Trade Desk to buy digital ad space across various platforms, including web and mobile apps, connected TV (CTV) and streaming services, social media, audio and podcasts, and digital billboards.

With the decline of third-party cookies, companies are looking for new ways to target audiences effectively. The Trade Desk has developed Unified ID 2.0 (UID2)—a privacy-first alternative to cookies that enables precise, data-driven advertising. We can’t scape from advertising!

Recent Financial Performance – Strong Growth but a Revenue Miss

The Trade Desk recently reported its Q4 2024 earnings, revealing a mixed performance. Revenue came in at $741 million, representing 22% year-over-year growth. However, this missed analyst expectations of $758.9 million. Adjusted earnings per share (EPS) were $0.59, beating expectations of $0.57. The company issued Q1 2025 revenue guidance of at least $575 million, which was below analyst estimates and also less than previous quarter.

So, what happened? Slower adoption of the new AI-powered ad platform, Kokai, and a sales reorganisation caused temporary disruption.

Despite missing revenue expectations, The Trade Desk remains one of the fastest-growing ad tech companies and continues to gain market share and that is our expectations.

TTD Stock Price Forecast – Where is The Trade Desk Headed?

If you’re wondering whether The Trade Desk stock will go up in 2025, let’s look at analysts’ forecasts.

The current stock price is around $81.92 per share after plummeting yesterday over 30%. The average 12-month price target from analysts is $125.62, with the highest target at $140 and the lowest at $95.

Analyst sentiment remains largely positive. Of the 26 analysts covering the stock, 21 rate it as a “Buy,” four rate it as “Hold,” and only one gives it a “Sell” rating. Although the earnings report was released yesterday, so this might change.

Growth Catalysts for The Trade Desk in 2025

Even with the revenue miss, analysts are bullish on TTD for several reasons. The shift to programmatic advertising is accelerating, connected TV (CTV) advertising is booming, and TTD is a leader in this space. The company has a strong cash position and no debt, while Unified ID 2.0 (UID2) could disrupt digital advertising in a privacy-first world. Additionally, ad spend is rebounding as economic conditions improve.

With these tailwinds, many analysts believe The Trade Desk stock could outperform the broader market in 2025 and beyond.

The Trade Desk vs. Competitors – Is It the Best Ad Tech Stock?

Before investing in TTD, it’s worth comparing it to other leading ad tech companies.

The Trade Desk has a market cap of $40 billion and reported 22% revenue growth in 2024, specialising in programmatic ads and AI-driven targeting. Google, with a market cap of $1.8 trillion, saw 9% revenue growth, with a focus on search and display ads as well as YouTube ads. Meta, valued at $1.1 trillion, had 24% revenue growth and dominates social media ads through Instagram and Facebook. Roku, with a market cap of $20 billion, reported 15% revenue growth, focusing on CTV and streaming ads.

Key Advantages of The Trade Desk Over Competitors

Unlike Google and Meta, TTD does not rely on first-party data, making it a stronger player in a cookie-less world. It is independent, meaning advertisers aren’t locked into one ecosystem like they are with Google or Meta. Connected TV (CTV) is a massive growth driver, and The Trade Desk is the leading independent player.

Given these advantages, The Trade Desk is well-positioned for long-term dominance in digital advertising.

Is The Trade Desk Stock a Buy in 2025?

Now, the big question: should you buy The Trade Desk stock? Well, we have done it for this challenge, and this is the reasoning behind it.

Reasons to Buy The Trade Desk Stock

The company has strong long-term growth potential in programmatic and connected TV advertising. It is a leader in the demand-side platform (DSP) market and its privacy-friendly advertising model (UID2) gives it a strategic advantage. The Trade Desk is a highly profitable business with no debt, and analysts remain bullish on its future.

Risks to Consider

Slower adoption of the Kokai platform impacted Q4 revenue. The company issued lower-than-expected Q1 2025 revenue guidance. There is heavy competition from Google, Meta, and Amazon. Economic slowdowns could also reduce ad spending.

Our Verdict

The Trade Desk isn’t without short-term risks, but for long-term investors, it remains one of the best digital advertising stocks to own.

Why We’re Adding The Trade Desk to Our £10-a-Week Investment Challenge

As part of Week 8 of our investment challenge, we’re investing in The Trade Desk (TTD) as a high-growth stock.

The reason is clear. Programmatic advertising is the future, and TTD is a leader in the space. The company has strong revenue growth and high margins. Analysts predict a significant upside in the next 12 months. TTD is well-positioned to benefit from the shift to privacy-first advertising.

While it’s not without risks, we believe The Trade Desk is a strong long-term buy for our growth portfolio.

Should You Buy The Trade Desk (TTD) Stock?

The Trade Desk is a dominant player in the growing digital advertising industry, particularly in programmatic and connected TV (CTV) advertising.

Despite the recent earnings miss and cautious guidance, analysts remain bullish on the stock, and the long-term growth story remains intact.

If you’re looking for a high-growth stock with exposure to the future of digital advertising, The Trade Desk is a strong contender, but as we always said, do your own research to see if it can fit in your risk profile.

FAQs – The Trade Desk Stock Forecast & Investment Guide

What is the 12-month forecast for The Trade Desk stock?

The average analyst price target for TTD is $125.62, with a high of $140.

Will The Trade Desk stock go up in 2025?

Analysts expect The Trade Desk to continue growing, but short-term volatility is likely due to recent revenue concerns. You can see how plummeted 30% after earnings release, so we hope that comes back a little bit.

Is The Trade Desk stock a good long-term investment?

Yes, due to its strong market position, growing revenue, and leadership in digital advertising. Despite the high valuation, it has good chances.

What is The Trade Desk’s biggest competitor?

Major competitors include Google, Meta, Amazon, and Roku in the digital advertising space.

Follow Our £10-a-Week Investment Challenge

Join us as we continue to build a long-term portfolio with dividend stocks with just £10 a week. Stay tuned for Week 9’s stock pick which will be shortly revealed and let us know what you think of The Trade Desk in the mean time!