The Trade Desk is a a polarizing stock. Some believe it’s poised to do well. They have very low debt,
attractive forward PE, good financials.
So why am I Bearish on TTD? It comes down to belief
Some red flags that made me cash out at a loss (3percent) was the 3 CFO in 1 year. I linked an article below from 1 year ago about how it’s viewed from a non bias party involving TTD. It signals either the CEO is incompetent at hiring CFO, fraud or just very unlucky.
[ https://www.reddit.com/r/humanresources/s/Q2ihxm72u3 ](https://www.reddit.com/r/humanresources/s/Q2ihxm72u3)
Another Red Flag for me is Management showing almost an uncaring reluctant attitude to inform investors about why they can’t keep CFO’s…
Amazon web services i believe will cut into Trade Desks bottom line. AWS charges 5 percent operating Fees but TTD is at 15-20percent. It’s conceivable that TTD will lose some clients to AWS at 75percent cheaper values.I’m aware of walled gardens advertising vs open,However I’m not convinced people will want to pay 75percent more for TTD over AWS
In addition TTD still trades at a high trailing PE for the business
Amazon has about the same PE as TTD but is a far more diversified hall of fame business deserving that price tag.
It’s not exactly move of confidence that the 2.6billion dollar CEO hasn’t bought a share at these prices. Yes I’m aware he’s paid on stock options. Are you aware that the CEO can see the financials of his company and isn’t buying despite an 80percent stock price haircut? If you’ve sold 115million in shares just last year why not redeploy them when your stock is significantly down? Because you as the CEO are simply not confident about the businesses future.
TLDR for my dyslexic As for why not to buy TTD.
1. Three CFO changes in under a year is either
2. incompetence from the CEO,fraud or simply and unlikely unlucky.
3.
4. Uncaring or reluctant management is keeping shareholders in the dark about competition/CFO issues
5.
6. Value is still more expensive than Amazon. Amazon is also a far better buy given the wide motes like wholefoods, AWS, Amazon the business Etc.
7.
8. A CEO that hasn’t bought any shares, who cares if he’s paid in stock option. If you’re bullish on the future of your company and feel it’s wrongly priced you’d be buying shares of your own company that you have financial insights into/control over.