Gary A. w/ TTD Buy signal (overvalued)

The Trade Desk: High Valuation Doesn’t Price In Competition Or Execution Risk https://seekingalpha.com/article/4203724?source=ansh $TTD

I think the biggest error with the thesis of this article is looking at the 61% and 54% revenue growth numbers for the past 2 quarters, without considering seasonality and that both numbers presented y-o-y acceleration.

volfan84
Long TTD
Overvalued is a sign of a Rule Breaker

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I haven’t yet read these, but Gary seems to have the same idea with ZS and MongoDB with these 2 new articles. These 3 companies may all be in nice company in my portfolio.

Zscaler: Due For A Pullback With Lockup Period Expiring https://seekingalpha.com/article/4205104?source=ansh $ZS

MongoDB: Risky At All-Time Highs https://seekingalpha.com/article/4205137?source=ansh $MDB

-volfan84
Who recognizes that valuation is far, far from an exact science and recognizes that being “overvalued” can be a great thing, indicating a great company with a big advantage of some sort (a moat, which Elon Musk said is lame…yay candy and not-a-flamethrower)

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Apologies for digging up yet another old thread for a reply basically just talking to myself, but I find it pretty funny that TTD, MDB, and ZS are all 3 firmly within my top-3 holdings now (along with NVDA and AYX) with the 3 links above in this thread all having had Gary Alexander calling them overpriced/overvalued.

This theme fits in considerably well with Tinker’s recent posts and distillation of his overall investing philosophy (which aligns closely with Saul and David Gardner).

volfan84
long TTD (#1 holding), MDB (#3 holding), and ZS (#5 holding)

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I didn’t actually read the article regarding TTD…the link to the article required a subscription. But what company doesn’t face competition or execution risk??

I’m with you on TTD Volfan, it’s my largest holding by far. I’ve been adding since 2017, and have tried to get in the habit of buying after good results. Valuation be damned.

Plan on holding until the story changes. The hardest part has been containing my excitement after listening to the Conference Calls. I have a feeling revenue growth will continue to accelerate, especially if we are truly seeing a paradigm shift to programmatic in Connected TV.

-Dan

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I bought TTD in April of last year after their big upswing after their earnings report.

They attributed their growth to tailwinds due to problems Facebook was having after the Cambridge analytics fallout and thought it would be good for at least a few quarters. But soon afterward google had problems as well and rather than people forgetting and moving on, the EU especially seems to be clamping down on what Facebook can do. I see this lasting for a few years at least and TTD is in a unique position to capture more market share as a result. They seem to really be without peer right now.

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