Trade desk ,TTD -3.22%, Due to concerns about the recession in the development of the company, this year has so far beaten a big beating on the stock market to lose 41% of its value as this writing. Investors pressed the panic button in February when the company reported the least revenue for Q4 2024 for Q4 2024, as well as a guidance for Q1 2025 with Miss.

However, the shares of the advertising technology company have climbed 63% since the 52-week reduced on 7 April. Earlier this year, trade desk sales attracted my attention, and I considered it A attractive bet Those days.

But now that the shares have started recovering, is it still a good idea? Let’s know.

Evaluation of trade desk is climbing once again

The trade desk was trading on a highly rich evaluation at the beginning of the year, but it became relatively affordable by April.

Data by YchartsPE ratio = price-to-Kamai ratio.

Now trading at 84 times earning, the trade desk contains an assessment which is almost several earnings. 100 in Nasdaq A common proxy for index, tech stock. But the good share is from the company Forward earnings many 38 is quite low.

It means a big leap in earnings for 2025. A look at the estimates of analysts tells us that trade desk is expected to speed up earnings of more than 20% in both 2026 and 2027 and 2027, after a higher jump of 7% of this year.

Data by YchartsEPS = Income per share.

However, the possibility of a trade desk that improves those estimates cannot be rejected. Eventually, the company’s adjusted income increased by 27% year after year in the first quarter. Looking forward, concrete benefits from the company artificial intelligence-Power Programatic Advertising Platforms can allow it to win more business and maintain its healthy growth rate.

On the latest income call, CEO Jeff Green underlined the benefits of his AI-capable platform:

For example, on average, customers who have been transferred have seen a 42% decrease in cost per unique access. We are also working with customers beyond the typical brand and reaching the metrics. Kokai Lower Funnel is distributed on KPI [key performance indicators]Including 24% lower cost and 20% less cost per conversion. These improvements are helping new and existing customers to unlock the performance budget.

The company believes that its AI platform’s high efficiency will encourage customers to spend more money on their programmatic advertising offerings. As a result, the company can see high margin and an increase in earnings even better than analysts.

Investors will do well to see evaluation

The trade desk is reorganizing its sales force to fade a large scale programtic advertising market more efficiently. According to the management, they are looking at the tricks fruit because the number of active contract negotiations is at an all -time high level. This shows that its future revenue pipeline can also improve.

Another thing to note here is tailwind from widespread development of programtic advertising. An estimate expands this market to ten times from 2033 with more than $ 235 billion in annual revenue.

The trade desk stock does not look expensive keeping in mind its long -term growth ability, and investors should still consider taking shares.