The Trade Desk Stock Forecast: TTD rockets ahead 16% after impressive quarter

The Trade Desk (TTD) stock has advanced 16.5% in Wednesday's premarket after the digital advertising marketplace posted much better second quarter results than the market expected. Ever since Snap (SNAP) issued results with the disclaimer that the digital advertising industry was in freefall, the general market has taken a decidedly skeptical approach to all players in the space. TTD stock is trading at $63.50 before the open.

The Trade Desk earnings results

The Trade Desk reported adjusted earnings per share of $0.20, which was in line with expectations from the analyst community, on revenue of $377 million. That top line was nearly $12 million ahead of consensus projections. Revenue came in about 35% above the corresponding quarter from 2021, and adusted EPS grew 11% YoY.

Management's projection for the third quarter also impressed traders. New guidance was given at a minimum of $385 million versus Wall Street consensus for $382 million. The company also said it expected adjusted EBITDA of $140 million.

"More of the world’s leading brands are signing major new or expanded long-term agreements with The Trade Desk, which speaks to the innovation and value that our platform provides compared to the limitations of walled gardens," said CEO Jeff Green. "This trend also gives us confidence that we will continue to gain market share in any market environment. At the same time, we continue to invest to drive future growth in key areas such as identity, Connected TV, retail media and supply chain optimization."

The Trade Desk stock forecast

With The Trade Desk stock's rise to the mid-$60 range on Wednesday, there are two primary price targets left for bulls in the near term. These are $70 and $76. The first level may once again provide resistance as it did in late March through April during the market's general downswing.

Above there is the range high at $76 from April 4. The Moving Average Convergence Divergence (MACD) shows that a rally is in the works and that it probably has legs to keep going for awhile. Support can be found in the $52 to $56 demand range that TTD stock just left behind on Tuesday.

TTD daily chart