https://www.fool.com/investing/2017/11/09/the-trade-desk-sto…
Stock down 10% today.
Investors are expecting way too much! It’s these inflated expectations that inflate the bubbles.
Denny Schlesinger
Long TTD
1 Like
Investors are expecting way too much! It’s these inflated expectations that inflate the bubbles.
So the TTD bubble burst today? So it’s a buy opp?
Actually, I kinda buy that. The market as a tapestry of individual company bubbles (or non-bubbles, depending on the company and valuation thereof). I don’t know on the whole if more companies are in individual bubbles right now than not…I assume many folks would say so. I don’t think there’s a Wix bubble, for sure…I think it’s undervalued. I don’t think there’s a Google bubble or Facebook bubble. With Amazon, Netflix, and others, it’s more debatable, but there are certainly plenty of companies out there which are pretty fairly valued.
Bear
4 Likes
So the TTD bubble burst today? So it’s a buy opp?
How do you value a company that is growing revenue at 100% y/y in some markets? Value investors don’t have the tools for it. How do you value a company in an industry that is under total transformation, an industry where clients hate the agencies? An industry were legacy is dying and new outlets are springing up like weeds? An industry that used to target passive viewers that are now becoming active? An industry where half the money was wasted but they could not tell which half but which now you can measure spot by spot?
My investing approach is based heavily on the company’s business model. The Trade Desk’s approach makes a whole lot of sense. Value investors think they can take a bunch of numbers and predict a future intrinsic value. I don’t. Instead I rely on typical growth patterns like the “S” curve. That tells me that in ten years it won’t make much difference if you bought at $40, $50 or $60. Short term I rely on chart reading
http://softwaretimes.com/pics/ttd-11-10-2017.gif
They say gaps fill and fast growers often drop by 50%. According to the TTD chart it could just as easily drop to 40 as bounce back to 70. Today is not the day to trade it. Watch the chart for a few days.
Denny Schlesinger
4 Likes
MF waffles a bit on holding TTD
https://www.fool.com/premium/stock-advisor/coverage/18/cover…
The Trade Desk is a great addition for investors committed to owning more than 30 stocks; holding them for five-plus years; buying no initial position above 5%; and enduring some volatility along the way.
1 Like