This Growth Stock Has Been Absolutely Crushed. But Is It Finally Time to Buy?

• The Trade Desk's gross maturation has slowed recently.

• Management guided for adjacent slower maturation successful Q4.

• Tough comparisons owed to governmental advertisement walk successful 2024 person been negatively impacting the advertizing exertion company's maturation rates.

• 10 stocks we similar amended than The Trade Desk ›

Typically reporting its fourth-quarter results successful the archetypal fewer weeks of February, The Trade Desk (NASDAQ: TTD) is owed for a quarterly update soon. Shareholders of the advertizing exertion institution are apt hoping the study tin bail them retired of dismal show recently. The banal is down astir 74% from an all-time precocious closing terms of much than $139. Even more, the past 5 years person been atrocious for the stock. During this period, shares are down astir 55%.

While show similar this whitethorn scare galore investors away, this is really a bully clip to look astatine the stock. After all, adjacent though the banal has been crushed, The Trade Desk's gross and net person performed good implicit the past 5 years. Could this beryllium a classical accidental to "be greedy erstwhile others are fearful," arsenic famed capitalist Warren Buffett is known for saying?

The Trade Desk's third-quarter gross was $739 million, up 18% twelvemonth implicit year. That was a deceleration from 19% maturation successful Q2 and 26% maturation for the afloat twelvemonth of 2024.

Still, this isn't atrocious show -- astatine slightest not the benignant of show you'd expect from a institution with a banal that has mislaid astir three-fourths of its value. The world is that The Trade Desk's underlying concern is really performing rather well. In fact, absorption noted successful its third-quarter update that lawsuit retention stayed supra 95%, extending a streak that has present lasted 11 consecutive years.

Further, the Trade Desk concern momentum is really amended than it looks. The institution is up against a pugnacious examination owed to large governmental spending successful 2024. When adjusted to exclude governmental spend, the Trade Desk's third-quarter 2025 gross really grew 22% twelvemonth implicit year, arsenic customers proceed to ramp up their advertisement walk connected the company's caller AI (artificial intelligence)-powered programmatic ad-buying platform, Kokai.

"The momentum continues to beryllium fueled by caller merchandise innovations we've launched crossed our Kokai platform," said CEO Jeff Green.

Further, the institution has been repurchasing a meaningful magnitude of its shares. In its third-quarter update, The Trade Desk announced an further $500 cardinal stock repurchase authorization, aft utilizing $310 cardinal to repurchase shares during Q3 alone.