|Bid||280.25 x 1800|
|Ask||280.84 x 800|
|Day's Range||277.08 - 285.63|
|52 Week Range||132.01 - 293.90|
|Beta (5Y Monthly)||2.70|
|PE Ratio (TTM)||138.19|
|Earnings Date||Feb 18, 2020 - Feb 23, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||273.63|
(Bloomberg) -- Google is upending the advertising world with its decision to “render obsolete” a key tool used by marketers for years to track would-be customers as they move around the web: It’s phasing out the cookie.On Tuesday the Alphabet Inc. unit said it would stop supporting third party cookies over the next two years. Cookies -- the bits of code that lodge in peoples’ browsers and follow them around the web -- allow advertisers to target people with ads for websites they previously visited, and keep track of which ads finally induced a purchase.Cookies have long been a core part of how the massive online ad industry operates. Criteo SA, a French marketing technology company that is particularly tied into the current system, dropped 16% on the news.Google’s decision ushers in a new reality for digital marketing, even though it’s not the only company with a similar stance. Apple Inc.’s Safari and Mozilla Corp.’s Firefox browsers already block third-party cookies, but because Google’s Chrome is used by the majority of internet users, the company’s decision represents a major industry shift.Getting rid of cookies “fundamentally makes everything different,” said Ari Paparo, head of digital ad firm Beeswax and a former Google executive. If the first era of online advertising was direct sales between publishers and advertisers, and the second era was algorithm-driven bidding, a system without cookies will be the third, Paparo said.Despite the magnitude of the change, Paparo said many advertisers have had time to wean themselves off cookies. The tool’s fate had been in limbo for some time, and at least now there is clarity for the industry about what to expect, he said. Further comfort for marketers: The changes only effect desktop advertising, while many ad dollars are now pouring into mobile phones or connected televisions.“Relevant advertising isn’t going anywhere, but cookies are an archaic technology,” said Dave Pickles, chief technology officer and co-founder of advertising tech company The Trade Desk Inc. “The fastest-growing segments of the industry, such as the booming connected TV market, rely on newer identity solutions.”Google has billed the change as a concession to changing sentiments toward online data collection. “Users are demanding greater privacy -- including transparency, choice and control over how their data is used -- and it’s clear the web ecosystem needs to evolve to meet these increasing demands,” Chrome Engineering Director Justin Schuh said in a blog post Tuesday.But even after cookies are gone, targeted advertising won’t go away completely. Google has proposed changes that would allow tracking to continue without passing personal information back to advertisers. That could give Google more power by cutting off marketers’ use of valuable data streams, while at the same time arguably increasing privacy online.In recent years, Google has been navigating a thicket of threats to its business, including the public’s rising demand for privacy and government investigations into whether its business practices in the ad tech world are anti-competitive. If Google shuts advertisers out from its system too much, they could increase their complaints that it’s being unfair. But if it ignores privacy advocates, some Chrome users could decamp for other browsers.The two-year time period for the phase-out of cookies should give marketers some time to adjust, and the search giant has said it’s seeking input from the industry as it works to find ways to help support online advertising going forward.Google has talked about taking a more measured approach to online ads than rival browsers from Apple and Mozilla. While those companies don’t derive much money from advertising, the vast majority of Google’s revenue comes from digital ads. It’s in the company’s interest to keep advertisers spending money on its websites and ad products. Google’s empire was built on its ability to provide targeted advertising.“Smart companies will adapt,” Paparo said. “Advertising is not going away.“To contact the reporters on this story: Gerrit De Vynck in New York at email@example.com;Naomi Nix in Washington at firstname.lastname@example.orgTo contact the editors responsible for this story: Jillian Ward at email@example.com, Molly SchuetzFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
While the market driven by short-term sentiment influenced by the accomodative interest rate environment in the US, increasing oil prices and deteriorating expectations towards the resolution of the trade war with China, many smart money investors kept their cautious approach regarding the current bull run in the third quarter and hedging or reducing many of […]
When the U.S. launched a missile strike that killed top Iranian general Qasem Soleimani, people around the world freaked out, claiming that this was the beginning of World War III. Investors freaked out, too, and markets around the globe tumbled the day after the missile strike.But my reaction to the missile strike was completely the opposite -- I saw it as a big plus for the U.S. stock market, and an even bigger plus for growth stocks.No matter which way you slice it, higher interest rates are the number one enemy of the stock market and the economy. Long story short, after a decade of next-to-zero interest rates, the market and economy have become addicted to and heavily dependent upon those low interest rates. A hike in interest rates would put tremendous pressure on companies' heavily-levered balance sheets and stocks' aggressively extended valuations. But, so long as interest rates remain low and a cataclysmic Black Swan event doesn't emerge, the economy and stocks will continue to push higher.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFrom this perspective, the U.S. missile strike on Iran is exactly what the stock market needed to head higher in 2020. This event sustains the Goldilocks global economy which propelled stocks way higher in 2019. That is, it creates enough worry to keep investors on their toes and keep interest rates depressed. But it doesn't create enough worry to meaningfully slow economic activity globally. * The Top 15 Stocks to Buy in 2020 That's a great combination which means that growth stocks -- which are big winners in low rate environments -- will head doubly higher. With that in mind, let's take a look at five growth stocks to buy as the Goldilocks economy persists. The Trade Desk (TTD)Source: Shutterstock/ Bella Melo Programmatic advertising leader The Trade Desk (NASDAQ:TTD) has been one of the best-performing growth stocks in recent memory. Over the past three years, TTD stock is up more than 900%, as the company has become a bigger and more important player in the global digital ad landscape.Long story short, programmatic advertising has turned into the future of digital advertising. As opposed to leveraging humans and guess-and-check processes to run ad campaigns, advertisers around the world are increasingly automating ad transaction processes using data and algorithms. This programmatic advertising pivot will persist in 2020, as automation tech gains more traction and digital ad spending trends remain strong.As it does, The Trade Desk -- which is widely considered the world's best and most robust demand-side programmatic ad platform -- will continue to attract more clients and grow ad spend per client. Revenue growth trends will remain robust. Profit margins will improve with scale as the company relies more on ad spend per client growth, and less on marketing spend. Profits will continue to roar higher.At this point, it seems like the only thing that can stop TTD stock is valuation friction. Indeed, up at almost 75-times forward earnings, TTD stock does seem richly valued.But low interest rates support this extended valuation. So long as interest rates remain low and the company maintains growth momentum, TTD stock will push higher. Both of those things will happen in 2020. As such, the big multi-year rally in TTD stock won't end this year. Beyond Meat (BYND)Source: calimedia / Shutterstock.com During the first half of 2019, plant-based meat maker Beyond Meat (NASDAQ:BYND) was one of the market's best performing growth stocks. During the second half, it was one of the market's worst performing growth stocks. In 2020, BYND stock appears well positioned to regain the winning streak it had during the first half of 2019.As Bill Gates once said, people tend to overestimate what can be accomplished in a year, and underestimate what can be accomplished in a decade. Beyond Meat is a living illustration of this. In 2019, everyone expected Beyond Meat and the plant-based meat trend to take over the world right away. Investors overestimated how much the company could accomplish in a year. The stock price reflected this, and as the company delivered numbers that were below expectations, the stock collapsed.Now, on the heels of this stock price collapse, investors are underestimating how much the company can accomplish over the next decade. During that stretch, plant-based meat will become the norm, thanks to health, cost, and resource conservation advantages. Beyond Meat will maintain its status as "the brand name" in the plant-based space. The company will turn into a global meats giant worth tens of billions of dollars. * 7 Stocks That Are Screaming Buys Right Now The Beyond Meat stock price today does not reflect this reality. Consequently, the company will deliver numbers in 2020 and beyond that exceed expectations. As it does, the stock will rebound from this big sell-off, especially against the back-drop of low interest rates. Square (SQ)Source: Jonathan Weiss / Shutterstock.com The 2020 bull thesis on payments processor Square (NYSE:SQ) boils down to four components.First, Square is a growth stock with a growth valuation. Interest rates project to remain low in 2020, and therefore project to remain supportive of growth stocks and growth valuations. Sustained low rates will consequently provide support for SQ stock over the next few months.Second, Square's adjusted revenue growth rates will stabilize and potentially even improve in 2020, thanks to rebounding economic activity, which should lead to upped consumer spending and heavier spend through the Square ecosystem. At the same time, new product launches like Cash App will continue to gain meaningful traction in this healthy consumer spending environment, providing more lift to Square's adjusted revenue growth rates. That's important, because when Square's adjusted revenue growth trajectory is improving, SQ stock tends to do very well.Third, Square's profit margins will continue to improve because the company's higher-margin services businesses will become bigger revenue contributors in 2020, thereby putting upward pressure on gross margins. Sustained big revenue growth should also drive bigger positive operating leverage.Fourth, at 72-times forward earnings for 30%-plus revenue growth and even bigger profit growth, SQ stock is one of the more attractively valued growth stocks in the market. Thus, favorable fundamental developments coupled with low rates have the potential to push SQ stock meaningfully higher from today's relatively depressed base. Canopy Growth (CGC)Source: Shutterstock Pot stocks had a rough go in 2019. Pot stock poster child Canopy Growth (NYSE:CGC) was no exception. Shares presently trade more than 60% off their early 2019 highs. But the whole cannabis sector -- led by CGC -- could stage a big rebound in 2020.The rebound thesis on CGC stock is fairly straightforward. All the things that went wrong for Canopy Growth in 2019 will go right in 2020. Falling revenue growth rates will turn into rising revenue growth rates, as demand trends in Canada stabilize thanks to the introduction of vapes and edibles products into the legal market, as well as more aggressive retail store expansion.Compressing margins will turn into expanding margins, as black market pricing pressures ease with improving demand trends and as the pace of production capacity expansion slows. Snail-like progress on the U.S. legislation front will pick up speed in 2020 as the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act makes its way through Washington.Canopy's 2019 headwinds will turn into 2020 tailwinds. Those 2020 tailwinds will converge on what has become a hugely depressed CGC stock with a record low valuation, to spark a big rebound in shares. * 10 2019 Winners That Will Be 2020 Losers Of course, low interest rates won't hurt, either. Canopy Growth -- like all pot stocks -- is still richly valued relative to the rest of the market. Low interest rates will help provide support for this extended valuation, especially as the growth narrative regains momentum. Snap (SNAP)Source: Ink Drop / Shutterstock.com Digital ad stocks are positioned to have a strong 2020, because the strength of ad market is closely tied to the strength of the overall economy (i.e. when the economy is firing on all cylinders, companies are more comfortable spending big on advertising). As such, the likes of Facebook (NASDAQ:FB), Alphabet (NASDAQ:GOOG), Pinterest (NYSE:PINS), and others will move higher in 2020.One digital ad stock which could out-perform peers in a big way in 2020 is Snap (NYSE:SNAP). Snap has been untouched by political ad scandals. By contrast, Facebook and Alphabet are feeling huge pressure to more strictly censor and even ban political ads in 2020. That means these companies are operating with their hands tied behind their backs. Snap isn't. That puts the company in a strong position to win a ton of political ad dollars this year.Second, Snap's newest product innovation, Cameos, looks very similar to the face swap filter of early 2019. That face swap filter was a big driver behind the platform's impressive user growth in early 2019, which drove huge gains in SNAP stock. The same thing could happen in early 2020. Cameos could power above-consensus user growth, which could spark another leg higher in SNAP stock.Third, Snap's profit margin profile will continue to meaningfully improve in 2020 as gross margins move higher alongside more favorable ad demand trends, and as sustained big revenue growth drives positive operating leverage.Connecting all the dots, it seems clear that Snap stock will regain its early 2019 momentum in early 2020, and sustain that momentum for most of the year.As of this writing, Luke Lango was long TTD, BYND, SQ, CGC, FB, and PINS. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The Top 15 Stocks to Buy in 2020 * The 7 Most Important Companies That Didn't Survive the 2010s * 4 Mega-Tech Stocks Reaching for the Sky The post 5 Growth Stocks to Buy for 2020 appeared first on InvestorPlace.
As we head into a new decade with stocks sprinting to all-time highs, everyone is looking for the best stocks to buy in 2020. Wall Street firm Needham thinks they've found one in programmatic advertiser leader The Trade Desk (NASDAQ:TTD).Source: Shutterstock/ Bella Melo In a recent note, Needham analyst Laura Martin called The Trade Desk the firm's top stock pick for 2020 thanks to three big tailwinds: improving digital ad market dynamics, continued robust adoption of programmatic advertising and out-sized growth in the "open internet" thanks to big tech titans like Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) being distracted by regulatory issues.The call on The Trade Desk from Needham is notable because Martin's top stock pick for 2019 was streaming device maker Roku (NASDAQ:ROKU). ROKU stock rose about 350% in 2019. Will The Trade Desk follow suit in 2020?InvestorPlace - Stock Market News, Stock Advice & Trading TipsYes and no. I couldn't agree more that The Trade Desk will have a great year in 2020, and that the stock will out-perform its peers. But, it won't pull a ROKU and quadruple. It won't even double, or rise by more than 50%. Instead, it's far more likely that the stock posts something like a 20% return year in 2020. * 7 Surprising Dividend Stocks to Buy That Offer Ample Yields Still, that's good enough return to warrant buying and holding shares of The Trade Desk over the next 12 months. As such, I'm with Needham here -- the stock is a top pick for 2020. The Trade Desk Will Have a Great 2020Most trends support the notion that The Trade Desk will have a great 2020.First, ad spend trends globally will re-accelerate in 2020 as companies across the globe up their ad budgets against an improving economic backdrop. Second, U.S. ad spends trends will get a double boost from this economic rebound, and from upped political ad spend in an election year. Third, the digital consumption shift will accelerate, thanks to the mainstream roll-out of 5G, the introduction of multiple new streaming services, and the launch of cloud gaming platforms. This will lead to digital ad spend acceleration, because ad dollars always chase consumption. Fourth, automation technology will continue to gain mainstream traction, and as it does, programmatic advertising adoption uptake rates will remain robust.On top of all that, the "open internet" will continue to gain momentum in 2020. Sustained regulatory pressures on Big Tech will force many of these companies to open up their walled gardens. Part of this opening will be in the digital ad world, where they will be forced to relinquish complete control of the ad transaction process. Amazon has already done this in part, allowing for third-party demand side platforms to buy and sell ads in its ecosystem. Facebook and Alphabet will likely follow suit, leading to healthy growth in ad spend through third-party demand side platforms.Connecting all the dots, 2020 looks like a great year to be invested in U.S.-focused, third-party demand side platforms in the programmatic digital ad world. In that category, who reigns supreme? You guessed it. The Trade Desk.As such, The Trade Desk's underlying fundamentals should materially improve in 2020. As they do, The Trade Desk stock should move higher. The Trade Desk Stock Will RiseThe long-term profit growth potential of The Trade Desk implies that the stock is positioned to run above $300 in 2020.At present, this is a 30%-plus revenue growth company in a ~20% growth global digital ad market. The global digital ad market will continue to grow at a double-digit rate over the next several years, thanks to sustained digital consumption shifts in verticals like streaming TV, cloud gaming and mobile. At the same time, programmatic advertising and open internet tailwinds imply that The Trade Desk will gain share in the digital ad market. Therefore, the company should grow revenues at a 20%-plus rate over the next few years.Gross margins at the company are up near 80%, and stable. That leaves plenty of room for 20%-plus revenue growth to drive positive operating leverage. That's exactly what will happen. Expense growth rates will moderate as the company gains share and leverages size and reputation (not marketing spend) to win over more clients. Revenue growth rates won't moderate. That combination will drive healthy margin expansion.Assuming 20%-plus revenue growth on top of steady margin expansion, my modeling puts The Trade Desk's earnings-per-share potential at $12.50 by fiscal 2025. Based on a 35-times forward earnings multiple, which is average for application software stocks with low capital spending rates, that equates to a 2024 price target for the stock of nearly $440. Discounted back by 10% per year, that yields a 2020 price target of almost $300. * 10 2019 Winners That Will Be 2020 Losers As we all know, stocks that are firing on all cylinders often tend to trade above their fair value. In 2020, The Trade Desk will be firing on all cylinders. Thus, by the end of the year, I fully expect to see its stock trading at prices well above $300, and probably closer to $325. Bottom Line on The Trade DeskDigital ad fundamentals will improve in 2020. Programmatic ad fundamentals will improve in 2020. Open internet fundamentals will improve in 2020.The Trade Desk is at the convergence of all three of those industries. Consequently, the company is in a great position to report strong numbers over the next twelve months. As they do, the stock should continue to climb, up to and potentially even above the $300 level.As of this writing, Luke Lango was long TTD and FB. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 2019 Winners That Will Be 2020 Losers * 5-Year Returns for 5 Dow Jones Stocks Entering 2020 * 5 Semiconductor Stocks to Buy for Big Gains In 2020 The post Why The Trade Desk Should Have a Strong Performance in 2020 appeared first on InvestorPlace.
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like...
We are now at the end of 2019, and what a year it has been for the stock market. A year ago, stocks could do no right. They were going through their biggest correction since 2008 amid escalating concerns that a recession was just around the corner. That recession never happened. Instead, throughout 2019, the global economic outlook has only improved.Now, at the end of 2019, stocks can do no wrong. The S&P 500 is up nearly 30% year-to-date and presently sits at record highs.Who called it? I don't mean to brag, but yours truly. In my 10 predictions for the stock market in 2019, my first prediction was that the S&P 500 was going to have its best year this decade. Up nearly 30% year-to-date, the S&P 500 is already having its second best year of the decade, and with just a few more up days, it could end 2019 with its best annual performance since 1997.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAlso in those 10 predictions for 2019, I nailed Disney's (NYSE:DIS) big breakout year (up more than 30% year-to-date), Tesla's (NASDAQ:TSLA) big breakout year (up nearly 30% year-to-date) and huge outperformances from Shopify (NYSE:SHOP), The Trade Desk (NASDAQ:TTD), Adobe (NASDAQ:ADBE), Roku (NASDAQ:ROKU) and Square (NYSE:SQ), among which the average year-to-date gain is over 150%.Now, it's time to unveil my bold predictions for 2020. Will the market have another breakout year? Or will stocks falter after a big 2019? Which stocks will do particularly well? Which stocks won't perform up to par? * 7 Stocks to Buy to Get 2020 Started the Right Way Let's answer those questions, and more, by taking a deep dive into my five boldest predictions for the stock market in 2020. Stock Market Predictions: Stocks Fall FlatSource: Shutterstock Why It Could Happen: I was very optimistic on stocks in late 2018 because awful was priced in, but awful was not the reality. At the end of 2019, though, we have a very different situation. Great is priced in. While great may be the reality today, it may not be the reality throughout the next 12 months.I do believe that U.S.-China trade tensions will continue to ease into the 2020 presidential election, and that those easing trade tensions will provide a meaningful lift to the global economy. But, I also believe that at 17.6-times forward earnings (versus a five-year average multiple of 16.6), a lot of that "lift" is already priced into the S&P 500. It's also worth noting that investors have entirely forgotten about the inverted yield curve. History says that the big pullback in stocks usually doesn't happen until 12-18 months after an inversion. That timeline puts us squarely in the middle of 2020.Why It Might Not Happen: The global economy will improve in 2020 thanks to easing global trade tensions. As it does, corporate leaders will become more confident. They will pour more money into the economy, which will provide more fuel for growth. Against this favorable backdrop, companies across the globe will report far better-than-expected earnings, management teams will lift their guides and analysts will keep pushing up their forward earnings estimates. Given all those favorable tailwinds, valuation might not matter in 2020. Stocks could keep pushing higher behind robust profit growth, with higher forward estimates being a justification for today's premium valuation. Ride-Hailing Stocks Bounce BackSource: Daniel Dror / Shutterstock.com Why It Could Happen: Ride-hailing giants Uber (NYSE:UBER) and Lyft (NASDAQ:LYFT) had awful initial public offerings in 2019. Since then, both stocks have been duds on Wall Street for various reasons, ranging from slowing growth, to extended valuations, to legislative and C-suite noise. In 2020, though, those headwinds should reverse course.At both Uber and Lyft, growth has already slowed meaningfully, with recent quarterly trends implying that this deceleration is moderating and that growth rates could stabilize in 2020. International expansion at Uber and new product launches at Lyft will also help stabilize growth. At the same time, both Uber and Lyft are trading at a fraction of their IPO valuations, so expectations are significantly depressed. Legislative and C-suite noise should also ease. As stabilizing growth trends converge on depressed valuations without any optical noise, ride-hailing stocks could bounce back in a big way in 2020. * 7 Vaping Stocks to Get into Ahead of the Crowd Why It Might Not Happen: UBER and LYFT stock may remain weak in 2020 if their growth trends continue to decelerate and losses continue to widen. This is unlikely. But, there is a chance that ride-hailing tailwinds continue to ease in 2020. The easing of these tailwinds could force even more promotional behavior from Uber and Lyft, the sum of which will result in weaker margins and bigger losses. If that does happen, neither of these stocks will rebound. Cannabis Stocks Will ReboundSource: Shutterstock Why It Could Happen: Pot stocks were killed in 2019. That's thanks to demand headwinds in the Canadian market, margin pressures from black market competition and snail-like progress on the U.S. legislation front. All of those headwinds converged on extended pot stock valuations, and caused companies like Canopy Growth (NYSE:CGC), Aurora (NYSE:ACB) and Cronos (NASDAQ:CRON) to shed more than half of their value.In 2020, the exact opposite could happen. Demand headwinds could turn into tailwinds with the launch of cannabis 2.0 products (edibles and vapes). Margin pressures from black market competition will ease as legal supply and logistics improve. And, U.S. legislation could make meaningful progress as the House just passed the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act. All of those positive developments could converge on what are now discounted valuations in the cannabis category and spark a big rebound rally in pot stocks.Why It Might Not Happen: The 2020 pot stock rebound thesis is entirely predicated on three things: revenue trend improvements, margin trend improvements and U.S. legislation progress. But, revenue trends may not improve if cannabis 2.0 products aren't a hit. Margin trends may not improve if legal supply and logistics improvements aren't sufficient to compete with the black market. And, U.S. cannabis legislation may not make much progress in a Republican-controlled Senate. If those three things don't happen, then pot stocks won't rebound. Nio Stock TriplesSource: Sundry Photography / Shutterstock.com Why It Could Happen: Chinese premium electric vehicle maker Nio (NYSE:NIO) is one of my favorite high-risk, high-reward picks going into 2020 for a few reasons. First, the stock was massively beaten up in 2019, and is well positioned to soar higher on any good news. Second, China's economy will rebound in 2020 after slowing for most of 2018 and 2019, thanks to easing U.S.-China trade tensions. Third, as China's economy rebounds, China's auto market will rebound, too. Fourth, China's EV market will rebound in an even bigger way, because legislation in China remains supportive of EV adoption. Fifth, NIO's sales trends are improving heading into 2020. Sixth, NIO is launching a new car next year, so today's improving sales trends should persist into 2020.Putting all that together, I think NIO stock has a reasonably good chance to more than triple in 2020. * The 10 Worst Dividend Stocks of the Decade Why It Might Not Happen: The rebound thesis in NIO stock is entirely predicated on improving U.S.-China trade relations providing a spark for China's economy and auto sector. If that doesn't happen -- and it might not, considering how volatile trade relations have been over the past year -- then NIO stock won't rebound, because investor sentiment will remain depressed and sales trends won't accelerate in the way they need to in order to support a multi-bag rally in NIO stock. Beaten-Up IPO Stocks Stage a ComebackSource: Shutterstock Why It Could Happen: Many high-flying IPO stocks hit a brick wall in mid-2019 and have since dropped off a cliff. See Beyond Meat (NASDAQ:BYND), Chewy (NYSE:CHWY), Slack (NYSE:WORK), Pinterest (NYSE:PINS) and Zoom Video (NASDAQ:ZM), among many others. I think most of those stocks will bounce back in 2020.These stocks were inarguably over-hyped following blockbuster IPOs. A few downward catalysts later, and they are all under-hyped. But, these are still great companies, pioneering change across big and valuable industries. Because of this, under-hype won't stick around for long. These beaten up IPO stocks will bounce back in 2020, behind sustained robust growth. Of note, I particularly like Beyond Meat and Pinterest as potentially 100%-plus upside candidates for 2020.Why It Might Not Happen: The batch of 2019 IPO stocks may remain weak in 2020 if: 1) interest rates move materially higher and create bigger valuation pressure on growth stock valuations, 2) broader stock market sentiment turns cautious amid choppy U.S.-China trade relations, and/or 3) these companies fail to make progress on the profitability front (pretty much all of them run losses today). As such, while IPO stocks look good for a big rebound in 2020, there are also multiple risks to that rebound thesis.As of this writing, Luke Lango was long TSLA, SHOP, TTD, ADBE, ROKU, SQ, LYFT, CGC, NIO, BYND, CHWY and PINS. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy to Get 2020 Started the Right Way * 10 Best ETFs for 2020: The Competition Is Stacked Full of Potential * 4 Gold Stocks to Buy as the Yellow Metal Surges The post 5 Bold Stock Market Predictions for 2020 appeared first on InvestorPlace.
For a brief moment in August and September 2019, value stocks finally started to outperform momentum stocks for the first time in several years. That is, during a stretch from late August to September, the iShares Value Factor ETF (BATS:VLUE) rose more than 10%, while the iShares Momentum Factor ETF (BATS:MTUM) fell flat.This unusual divergence was the result of rapidly rising U.S. Treasury yields. Long story short, momentum stocks were being pushed higher by low interest rates, which were being pulled lower by Federal Reserve rate cuts and escalating U.S.-China trade tensions. But, in late August, trade tensions started to ease, the economic outlook started to improve and it looked like the Fed was going to pause its rate-cutting cycle. Interest rates surged higher, putting pressure on momentum stocks (for valuation reasons) but breathing life into value stocks (because higher rates usually mean a stronger economic outlook).This trend has since ended. Yes, the economic outlook is still improving, the Fed is still on hold and trade tensions are still easing. But, despite all that, inflation remains stubbornly below 2%. So, Treasury yields have flat-lined since mid-September. As they have, value and momentum stocks have performed equally well, with both rising about 5%.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOne way of looking at this dynamic is that value stocks are finally holding their own. The other view -- which I feel is more appropriate -- is that momentum stocks refuse to slow down. No matter what you throw at them -- be it falling rates, rising rates, fast economic expansion, slow economic expansion -- momentum stocks just keep running higher. * 7 Vaping Stocks to Get into Ahead of the Crowd With this thought in mind, let's take a closer look at seven momentum stocks which have fully embodied this "we won't slowdown for anything" attitude. Momentum Stocks to Watch: Shopify (SHOP)Source: Jirapong Manustrong / Shutterstock.com Trailing 3-Year Return: 854%Year-to-Date Return: 185%E-commerce solutions provider Shopify (NYSE:SHOP) has morphed into the poster child of unstoppable momentum stocks in the internet era, rising a whopping 854% over the past three years and 185% year-to-date on the back of internet-related tailwinds.Shopify got to this point by turning into the backbone of digital commerce. In a nutshell, Shopify provides e-commerce tools so that any merchant, regardless of size or background, can succeed in the e-retail world. In essence, it has become a necessary tool for every merchant looking to sell online. Fortunately for Shopify, the entire commerce world has pivoted online over the past few years. As it has, retailers and merchants of all shapes and sizes have increasingly employed Shopify's solutions to help them sell more effectively online. This rapid adoption uptake has led to huge sales growth at Shopify, at favorable gross margins, which has powered enormous gains in SHOP stock.At present, only 11% of retail sales in the U.S. are transacted digitally. That's a small number. Inevitably, it will move higher over time, meaning that the e-retail tailwinds which have propelled huge growth at Shopify won't slow anytime soon. From this perspective, Shopify projects as a big grower for a lot longer. Just below a $400 price tag, a lot of that big growth is priced in … so much so that shares may need to take a temporary breather here.But, in the long run, sustained big growth through e-retail expansion will keep SHOP stock on a winning path. Chegg (CHGG)Source: Casimiro PT / Shutterstock.com Trailing 3-Year Return: 404%Year-to-Date Return: 35%Connected learning platform operator Chegg (NYSE:CHGG) has taken digital world principles and applied them to the academic industry. In so doing, Chegg has turned into a momentum stock that is up almost five-fold over the past three years and nearly 40% year-to-date.Chegg got here by doing something very simple -- creating a learning platform that students have wanted for a long time. That is, high school and college students today are surrounded by digital, on-demand connected services which make their lives very easy. The academic world, though, did not offer any such digital, on-demand and connected service. So, Chegg created it, offering a suite of services like on-demand tutoring, e-textbooks and online courses, all on one connected learning platform. Students from across the nation have quickly bought into the Chegg ecosystem. As they have, Chegg's revenues, profits and stock price have all marched higher.The key numbers here are 3.1 million and 36 million. That first number is the number of Chegg subscribers today. The second number is the total number of high school and college students in the U.S. Thus, Chegg is tapping into less than 10% of its addressable market in the U.S. alone. Eventually, Chegg will expand internationally, too. So, the runway for further growth here is very big and very long. * The 8 Biggest Investing Surprises of 2019 In other words, Chegg won't stop growing at a robust rate anytime soon. Sustained robust growth will continue to push CHGG stock higher. The Trade Desk (TTD)Source: Shutterstock Trailing 3-Year Return: 720%Year-to-Date Return: 126%Programmatic ad tech leader The Trade Desk (NASDAQ:TTD) has become an increasingly important player in the digital advertising world. As it has, TTD stock has turned into a monster growth stock, delivering a near 800% return over the past three years and a 126% return in 2019 alone.The Trade Desk got here for three reasons. First, ad dollars have continued to chase engagement into the digital channel, and The Trade Desk provides demand-side services for digital advertisers. Second, the digital ad world has become increasingly programmatic, where the ad transaction process is becoming fully automated, and The Trade Desk is the leading demand-side platform (DSP) for programmatic ads. Third, the digital ad world is also becoming increasingly "open," as big tech companies are being forced to open their walled gardens, thereby allowing third-party DSPs like The Trade Desk to earn a bigger share of the global digital ad pie. These three dynamics have together propelled tremendous revenue and profit growth at The Trade Desk, which has in turn powered huge gains for TTD stock.All three of these favorable dynamics will remain in play for the foreseeable future. Ad dollars will continue to rush into the digital channel. Automated technologies will become more commonly used, and programmatic advertising will become the norm in the digital ad world. Open internet initiatives will gain traction, thereby allowing The Trade Desk to keep gaining share.The three things which have propelled big growth at TTD over the past few years will similarly propel big growth for the next few years, too. Some of this big growth is priced into TTD stock. But not all of it. So TTD stock should keep marching higher in the medium to long term. Okta (OKTA)Source: Sundry Photography / Shutterstock.com Trailing 3-Year Return: 580%Year-to-Date Return: 84%Cloud security solutions provider Okta (NASDAQ:OKTA) has taken a unique approach to cloud security. This unique approach has gained traction in the global enterprise world. As it has, OKTA stock has turned into an unstoppable momentum stock, including an 81% year-to-date surge.The key to Okta's success is that this company has built an optimal identity-based cloud security solution which doesn't compromise on security, and yet optimizes mobility. Essentially, traditional cloud security solutions were like big protective castles surrounding an entire enterprise ecosystem. Much like castles, these solutions were safe, but didn't allow for individual mobility (people had to stay within the castle). Okta solved this by getting rid of the castle, and outfitting each individual in the ecosystem with their own security armor. In so doing, Okta created an identity-based security solution which maintained high security standards, but also didn't restrict mobility. Enterprises have fallen in love with this solution. As they have, Okta's revenues, profits and stock price have all soared higher.Okta's core Identity Cloud platform will continue to gain traction in the 2020s. Powering the adoption uptake will be an increase in the number of connected devices in an enterprise ecosystem thanks to 5G and internet of things tailwinds, as well as higher usage of gig economy principles and remote work. In sum, these trends will make enterprise security mobility more important than ever, and this will turn more and more businesses into Okta customers. * 10 Best-Performing Growth Stocks of the 2010s As Okta's customers, revenues and profits march higher over the next few years, OKTA stock will march higher, too. Adobe (ADBE)Source: r.classen / Shutterstock.com Trailing 3-Year Return: 211%Year-to-Date Return: 45%Mega-capitalization creative solutions giant Adobe (NASDAQ:ADBE) has not let its increasing size slow its growth trajectory. Instead, Adobe has leveraged secular creative market tailwinds to sustain huge revenue and profit growth, the sum of which has driven a 211% gain in ADBE stock over the past three years and a 45% gain in 2019.There are three big businesses at Adobe. All three have been firing on all cylinders. First, there's the Creative Cloud business, which has grown by leaps and bounds due to a rise in creative content creation, distribution and consumption. Second, there's the Document Cloud business, which has also grown rapidly due to the paper-to-digital shift happening everywhere. Third, there's the Experience Cloud business, which has become a big player in the enterprise cloud market as visuals have become an increasingly important part of the customer experience. Big growth across all three of these verticals has propelled big gains in Adobe's revenues, profits and stock price.The creative market is really just getting started. Everywhere you look, creativity is becoming more and more important, and more and more widely deployed across various verticals. Because of this, Adobe finds itself at the epicenter of an ever-expanding creative solutions market. In this market, Adobe essentially has no competition, because it provides the best-in-class creative solutions in every major category.Given this, it appears obvious that Adobe will sustain big and profitable growth for a lot longer. That big and profitable growth will keep ADBE stock on its long-term winning trajectory. Splunk (SPLK)Source: Michael Vi / Shutterstock.com Trailing 3-Year Return: 181%Year-to-Date Return: 42%Big data analytics platform provider Splunk (NASDAQ:SPLK) has turned into an unstoppable momentum stock thanks to its broad and robust exposure to artificial intelligence and data-related tailwinds, the sum of which have driven a 181% trailing three-year gain in SPLK stock (including a 44% year-to-date gain).Splunk is all about converting data into everything, so much so that the company's core product is called the Data-to-Everything platform. At a high level, what this platform does is what every business today needs to do, and that is turning the mountains of raw data at their fingertips into actionable insights which can improve the company's research, product development, sales and marketing initiatives. Business have increasingly realized that they need to pivot towards a data-driven decision making framework over the past few years. As they have, Splunk's customer base has rapidly expanded. Revenues and profits have soared. So has SPLK stock.This growth narrative is just getting started. The volume of data globally is going to grow exponentially from here, as companies start deploying more data-tracking initiatives and as the number of data-tracking devices grows with IoT expansion. At the same time, our abilities to transform that data into actionable insights will similarly grow as machine learning and AI algorithms improve with time and practice. Consequently, we are at the tip of the iceberg when it comes to entering an era of data-driven decision making. * 4 Beaten-Up Pot Stocks Worth Considering in 2020 That's great news for Splunk. The more companies pivot toward a data-decision making framework, the more they will pivot toward using Spunk's Data-to-Everything platform. This will sustain huge revenue and profit growth at Splunk, which will in turn sustain big gains in SPLK stock. Roku (ROKU)Source: JHVEPhoto / Shutterstock.com Trailing 3-Year Return: 891%Year-to-Date Return: 350%The hottest momentum stock on this list is streaming device maker Roku (NASDAQ:ROKU), which has rode secular streaming TV adoption tailwinds to huge share price gains, including a near ten-fold increase from the stock's September 2017 IPO price of $14 and a 350%-plus gain in 2019 alone.The streaming TV world is booming. Everyone is going from watching linear TV to watching streaming TV. Amid this pivot, the streaming TV world is becoming increasingly complex. There's a ton of supply and a ton of demand. Someone needs to organize the market and seamlessly connect all that supply to all that demand. Roku is that someone. It is increasingly transforming into the de facto "cable box" of the streaming world, providing a central, common and streamlined access point for consumers to watch their favorite streaming services. Because of this, Roku has sustained big user and engagement growth, which has propelled even bigger revenue growth as ad dollars have chased users into the Roku ecosystem.All of this will continue over the next decade. More and more consumers globally will pivot into the streaming TV channel. Most of them will use the Roku OS to access their streaming services. Ad dollars will continue to chase those consumers into the Roku ecosystem.Big picture, then, Roku will sustain big growth for a lot longer. That means ROKU stock is far from being done with its rally.As of this writing, Luke Lango was long SHOP, CHGG, TTD, OKTA and ADBE. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Vaping Stocks to Get into Ahead of the Crowd * 5 Retail Stocks That Are Winning Big This Holiday Season * Make the Shift Toward Value Stocks With These 5 Picks The post 7 Momentum Stocks Refusing to Slow Down appeared first on InvestorPlace.
Programmatic advertising leader The Trade Desk (NASDAQ:TTD) is one of those stocks that investors should buy and hold for the long haul. It's a high-growth company, with a leadership position in a high-growth industry and huge, non-cyclical tailwinds which should generate high growth for a long time. Meanwhile, it also has a high gross-margin business, so its rapid revenue growth should drive very high profit growth in the long-run.Source: Shutterstock As go profits, so go stocks. The Trade Desk's profits will surge higher over the next five to ten years. So will TTD stock. That's why I named TTD stock one of the five best tech stocks to buy and hold for the long haul. It's also why I named TTD stock as one of my five favorite tech stocks to buy for the next decade.All in all, TTD stock is a great addition to long-term portfolios.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHaving said that, price matters, even for high-growth stocks that look poised to deliver big long-term returns. And, right now, the price of TTD stock is pretty high. That is, its shares seem fully valued and are trading exactly where they should be heading into the end of 2019.I don't like to buy stocks at fair value. I like to buy them below their fair value. So, with TTD stock on the heels of an enormous 120% 2019 rally, I'm not chasing the stock up here. * These 7 S&P 500 Stocks Will Deliver a Repeat Performance in the Next Decade Instead, I'll let the stock cool down. Inevitably, it will. When it does, that will be the time to buy it because this stock will make its way towards $300 in 2020. The Trade Desk Is a Long-Term WinnerThe background and fundamentals of The Trade Desk make it a long-term winner.The Trade Desk is an ad-tech company that has created a demand-side platform (DSP) which programmatically buys and sells ads for advertisers. DSP uses data, machine learning, and algorithms to carry out those tasks. At first glance, that may sound complex. But the underlying idea is pretty simple. In the old days, advertisers had to sit down, think about where to put their ad dollars, have human-to-human negotiations with ad platforms, and then -- after all that -- finally put their ad dollars to work. This arduous, labor-intensive process had to be repeated every time new ads were placed and ad budgets were adjusted.The Trade Desk has automated this process. As a result, the process has become much simpler, smarter, faster, and cheaper. There's no more thinking about where to put ad dollars. The Trade Desk's data answers those questions. There's no more human-to-human negotiations. The Trade Desk programmatically buys ads. Tasks don't have to be repeated. The Trade Desk dynamically adjusts ad campaigns based on real-time data.In other words, The Trade Desk simply makes advertising easier and better for ad buyers. Because of that, more and more companies are pivoting bigger and bigger chunks of their ad budgets onto The Trade Desk.That pivot will continue for three main reasons.First, The Trade Desk services the digital ad market, and many ad dollars continue to shift into the digital ad market. Second, automation technology is only scratching the surface of its potential. In the 2020s, it will get better and go more mainstream. As it does, programmatic advertising will become the norm across the entire digital ad landscape. Third, open internet initiatives are gaining traction. As they do, more companies will use third-party DSPs -- like TTD -- as opposed to using in-house DSPs.In short, The Trade Desk is a high-growth company whose growth should remain strong for a long time. The Trade Desk Stock is Going HigherPropelled by favorable non-cyclical growth trends, The Trade Desk stock will march higher in the long run. But its gains over the next few months are likely to be limited.The Trade Desk's revenue is rising at a 30%-plus rate. Gross ad spending on the platform came to less than 1% of total digital ad spending in 2018. The non-cyclical positive catalysts of programmatic advertising and the open internet indicate that TTD's share of gross ad spending will continue to expand at a steady rate over the next few years. It has been expanding roughly 0.15 percentage points per year since 2016. That trend will likely persist into 2025.Assuming the trend does continue and given that the digital ad market is growing by double-digit percentage levels, the company's top line should increase 20%-25%.Its gross margins are up near 80%. They should stay there for the foreseeable future, since the gross margins of most ad tech companies are around that level. Meanwhile, sustained 20%-25% revenue growth should be enough to increase the profitability of the company's revenue, pushing the operating spending rate down towards a more normal 40%-45% level by 2025.Putting all that together, my modeling calls for The Trade Desk's earnings per share to reach roughly $12 in 2025. Based on a 35-times forward earnings multiple, which is average for application software stocks with low capital spending rates, that equates to a 2024 price target for TTD stock of $420. Discounted back by 10% per year, that yields a 2019 price target of $260 and a 2020 price target of over $285. The Bottom Line on TTD StockTTD stock is a long-term winner, supported by non-cyclical positive growth catalysts, a favorable financial profile, and huge profit growth prospects. Having said that, a lot of the good stuff is already fully priced into TTD stock today. So, there's no rush to buy the shares at their current price of $255.But if or when TTD stock starts to drop, that will be the time to buy the shares. In 2020, TTD will make a run towards $300.As of this writing, Luke Lango was long TTD. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * These 7 S&P 500 Stocks Will Deliver a Repeat Performance in the Next Decade * 7 Tech Stocks to Stuff Your Stocking With * 7 Sinfully Good Casino Stocks That Could Win the Jackpot in 2020 The post Buy The Trade Desk Stock on Dips Heading Into 2020 appeared first on InvestorPlace.
Today we found three 'cheap' tech stocks trading under $10 per share with the help of our Zacks Stock Screener that investors might want to buy heading into 2020...
The bullish case for Trade Desk Inc (NASDAQ: TTD ), a provider of a technology platform for buyers of advertising, can be made for three reasons, according to Needham. The Analyst Needham analyst Laura ...
Needham analyst Laura Martin, who is widely regarded as the most prominent bull on Roku stock, is now saying investors should buy digital ad company Trade Desk. (TTD) (TTD) provides ad buyers with a digital platform to create and manage their campaigns.
The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. Insider Monkey finished processing more than 750 13F filings submitted by hedge funds and prominent investors. These filings show these funds' portfolio positions as of September […]
Shares of The Trade Desk Inc. are up more than 5% in premarket trading Friday after Needham's Laura Martin upgraded the stock to buy from hold while setting a $325 target price. She argues that ad unit availability in the U.S. could fall by 10% in 2020 due to declining viewership of linear televsion, but that demand for U.S. ad units will climb by 10%, creating a favorable pricing environment. "Ad units should see unprecedented pricing power in 2020," she wrote. "TTD is the largest buyer of ad units in the open internet (including connected TV), and takes a 20% revenue share of ad dollars spent on its platform." TTD shares have climbed 107% so far this year, as the S&P 500 has increased 24%.
Global advertising technology leader, The Trade Desk (TTD), today announced the appointment of Lisa Kopp Johnson as the company’s General Manager of Business Development for the Midwest United States. Most recently, she served as Vice President of Sales for the Midwest and West Coast regions for Amobee, where she helped drive strong, consistent revenue growth based on relationships with some of the region’s most prominent brands. “Lisa has been a major presence in the Midwest advertising industry for several years, and we are thrilled to bring her business development expertise to The Trade Desk,” said Stacy Bohrer, Regional Vice President, The Trade Desk.
Generally speaking, investors are inspired to be stock pickers by the potential to find the big winners. You won't get...
(Bloomberg) -- Google is pulling powerful targeting tools from political advertisers, a move that prompted a sharp rebuke from President Donald Trump’s campaign.Because of the changes outlined last month, campaigns that use Google to place election ads on Google Search, YouTube and other websites can no longer target them to a particular audience based on political affiliation.But the new policy has a loophole that means large swathes of Google ad space on the web can still be highly targeted by candidates and other political groups looking to sway voters during the 2020 election.The internet giant lets advertisers buy some of its marketing spots using their own targeting data, and technology from other companies. Political advertisers could embrace these alternatives to get around Google’s policy.This loophole shows how the labyrinthine advertising-technology ecosystem makes it difficult for internet giants to police election ads. Google and Facebook Inc. dominate the digital ad market, but hundreds of smaller companies crunch data and provide tools to advertisers.Google, Facebook at Center of Rising Political-Ad TensionsGoogle provides three main types of ad space: Search, YouTube and display. Display ads include banners and videos placed on websites around the world. Google acts as a middleman between those sites and advertisers. To buy, advertisers can go directly through Google, or they can use other providers such as Trade Desk Inc., MediaMath Inc. and Adobe Inc.That’s where the loophole shows up. Google’s new limits should work on YouTube and Search ads because they can only be bought through Google. But many Google display ads are put up for auction on Google’s ad exchange, and advertisers can bid on these marketing spots using whatever targeting data and tools they want.“Advertisers can skirt this policy and still access the exchange,” said Grace Briscoe, a vice president at Centro Inc., which sells tools for marketers to bid on ad exchanges, including Google’s.There’s not much Google can do to close the loophole because the company can’t check targeting data it doesn’t control, and can’t impose its policy on other ad-tech companies, according to Briscoe.Trump Campaign Says Google’s Ad Changes Will Suppress 2020 VoteThe policy applies to Google’s ad-buying tool, known as DV360, but not to Google display ads bought through other companies like Trade Desk, a Google spokeswoman said in an email.Spokesmen for Adobe and Trade Desk said it was possible to buy targeted ads on Google using their tools. Trade Desk doesn’t allow targeting down to the individual for political ads, the company’s spokesman said.Adobe’s policies require political ads to be clearly labeled. Specific targeting is allowed if advertisers bring their own data, a spokesman for the company said. A spokeswoman for MediaMath declined to comment.Democratic presidential candidate Michael Bloomberg is the founder and majority owner of Bloomberg LP, the parent company of Bloomberg News.Online advertising giants Facebook and Alphabet Inc.’s Google are at the center of a major debate over political advertising in the U.S. The companies allow highly tailored messages to be delivered to small groups of people, changing the way campaigns operate and making it possible to send ads that the wider world never sees. Both companies require political advertisers to upload their ads to a public database.Twitter Inc. banned political advertising completely last month while Facebook says it will keep accepting ads from politicians and won’t check them for accuracy.\--With assistance from Mark Bergen and Bill Allison.To contact the reporter on this story: Gerrit De Vynck in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Jillian Ward at email@example.com, Alistair Barr, Anne VanderMeyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
In early September, we saw an unprecedented shift in the investment landscape from momentum stocks to value stocks. This came amid a recovery in economic fundamentals and a sharp rise in interest rates.By mid-September, the the iShares Momentum Factor ETF (BATS:MTUM) was down more than 1%, while the iShares Value Factor ETF (BATS:VLUE) was up more than 7%. This big divergence prompted me to write a piece on InvestorPlace outlining seven momentum stocks to buy on the dip.The logic was simple. These sharp momentum-to-value shifts don't happen often. But, when they do, it's when the things are getting better. See late 2016. It is investors voting with their money that the coast is clear to buy stocks that require a good economy to head higher. As such, these shifts are normally temporary, and a harbinger of a broader market rally. When they end, both value and momentum stocks power higher alongside a rising economy.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThus, I reasoned that the September weakness in momentum stocks presented a solid buying opportunity into 2020, when all stocks would power higher supported by easing trade tensions, re-accelerated global capital investment and economic activity, revamped corporate profit growth, healthy labor markets and supportive central bank policy.Fast forward two months. Since then, both the Momentum Factor ETF and Value Factor ETF are up more than 3%, five of the seven momentum stocks I recommended are up more than 8%, and three of them are up more than 20%. * 7 Stocks to Buy in December I think this momentum stock rebound will continue. As such, let's take a deeper look at five of my favorite momentum stocks that have shown impressive strength since mid-September. Momentum Stocks to Buy on the Rebound: The Trade Desk (TTD)Source: Shutterstock % Gain Since Sept. 16: 20%At one point in time, programmatic advertising leader The Trade Desk (NASDAQ:TTD) was one of the biggest losers in the mid-2019 momentum-to-value shift. Shares had shed almost a quarter of their value by mid-September. But, since then, shares have soared 20%.This big rebound in TTD stock will persist for a few reasons.First, the long-term fundamentals are favorable here. Programmatic advertising is "smart" advertising, which leverages algorithms, data and machine learning to transform ad transactions and ad spend allocations from a guess-and-check process, to an automated and optimized process. The whole ad industry is pivoting into programmatic advertising, yet only a small portion of global ad dollars are transacted programmatically today. The Trade Desk is at the center of this pivot. Thus, as more ad dollars flow into the programmatic channel over the next few years, TTD's revenues and profits will continue to roar higher.Second, the valuation remains reasonable. By my numbers, The Trade Desk will net $12 in earnings per share by fiscal 2025, behind 20%-plus annual revenue growth, steady profit margin expansion and 25%-plus profit growth. Based on an exit multiple of 35-times forward earnings (which is average for application software stocks) and a 10% discount rate, that equates to a 2019 price target for TTD stock of $260 -- above today's $250 price tag.Third, the optical backdrop will remain supportive. Yields appear to be done surging, so the valuation headwinds which hit TTD stock in September also appear to be over. At the same time, easing trade tensions should support a rebound in enterprise capital spending, and as that picks up, companies should spend more on their programmatic advertising pivots.Ultimately, TTD stock should stay in rebound mode. Adobe (ADBE)Source: r.classen / Shutterstock.com % Gain Since Sept. 16: 8%Shares of creative solutions giant Adobe (NASDAQ:ADBE) weren't hit that hard by the mid-2019 momentum-to-value shift. But, ADBE stock has still rattled off an impressive 8% gain since mid-September as momentum stocks have come back in favor. Shares presently trade just a few bucks shy of all-time highs.The fundamentals here imply that ADBE stock should hit new all-time highs soon.The economic and market backdrops are healthy. Trade tensions are easing. Easing trade tensions will support a rebound in capital spending, which will fuel a rebound in the global economy. As the global economy rebounds, stocks will broadly power higher. This rising tide will lift most boats, including ADBE stock.Adobe's internals are equally healthy. This is a company which dominates the secular growth creative solutions market with essentially no real competition. Growth is big because enterprises and professionals are investing more into creative solutions as the world becomes more visually based. Margins are huge, because Adobe commands tremendous pricing power. Profit growth is consequently big, too. All of this should continue for the foreseeable future, and at an accelerated rate in 2020, thanks to a rebound in enterprise spending trends.Also of note, the valuation on ADBE stock remains tangible. By my projections, Adobe will remain a double-digit revenue growth company for several years thanks to creative market tailwinds, while margins will naturally improve with scale. Those growth projections create visible runway for earnings per share to hit $20 by fiscal 2025. Based on a systems software sector-average 25-times forward earnings multiple and a 10% discount rate, that equates to a 2019 price target for ADBE stock of $310. * 7 Unsteady Stocks Investors Should Consider Selling Before 2020 All in all, then, the data here suggests that ADBE stock will remain in rally mode. Okta (OKTA)Source: Sundry Photography / Shutterstock.com % Gain Since Sept. 16: 24%Another momentum stock which was hit hard during the momentum-to-value shift was identity cloud company Okta (NASDAQ:OKTA). Much like TTD stock, OKTA stock lost about a quarter of its value during this shift. Since mid-September, though, OKTA stock has rattled off a 24% gain.OKTA stock should continue to rebound for three big reasons.First, Okta is a big growth company with strong long-term fundamentals. At its core, this company is reinventing the way companies protect their data. Instead of building a castle of security surrounding an entire enterprise ecosystem (as most traditional cybersecurity solutions do), Okta is outfitting each member in an enterprise ecosystem with personalized "armor," under the idea that if each individual is protected, so is the entire ecosystem.Okta calls this new method the Identity Cloud. This Identity Cloud is surging in popularity, because it improves enterprise flexibility, mobility and convenience, without compromising on security integrity. Still, Okta is a relatively small company (less than $500 million in revenue) in a huge cybersecurity market ($170 billion and growing), so there is ample room for Okta to stay on a big growth trajectory for a lot longer.Second, the valuation on OKTA stock isn't stretched. My modeling suggests that Okta has a visible opportunity to net $11 in EPS by fiscal 2030 (assuming 20%-plus revenue growth, sustained big gross margins, and significant positive operating leverage). Based on an application software sector-average 35-times forward multiple and a 10% discount rate, that equates to a 2019 price target of nearly $150.Third, the optics are improving. Specifically, capital spending trends are rebounding, and Okta's revenues come from the capital spending well.Big picture -- OKTA stock can and will keep moving higher. Chegg (CHGG)Source: Casimiro PT / Shutterstock.com % Gain Since Sept. 16: 11%On seemingly no catalyst whatsoever, shares of digital education giant Chegg (NASDAQ:CHGG) tumbled from nearly $50 in late July 2019, to below $30 by early November 2019. Then, Chegg reported strong third-quarter numbers, which implied that the selloff was grossly overdone. CHGG stock has since rebounded to $40.This rebound should continue until CHGG stock runs back to its $50 all-time highs.Chegg is a big growth company. This company has created a connected learning platform which is increasingly becoming a necessary and vital part of the learning experience for high school and college students. That's because Chegg has built the first education platform that caters to modern student's needs. They want digital services, they want on-demand services, they want streamlined services and they want all-the-time services. Chegg provides all four, all in one place.As such, it isn't too far off to think that Chegg will one day be used by most high school and college students across America. There are 36 million students who fit that description. Chegg has only nabbed 3.1 million of them. Thus, with a meager 10% penetration rate in a highly fragmented market that is ripe for disruption, Chegg is primed for big growth over the next few years.This big growth simply isn't priced into CHGG stock today. By my numbers, Chegg has a realistic opportunity to hit $2.50 in EPS by fiscal 2025. Based on a big-growth 30-times forward earnings multiple and a 10% discount rate, that equates to a 2019 price target for CHGG stock of $45. * 10 Tech Stocks to Buy Now for 2025 That's well above where shares trade today. So long as shares remain fundamentally undervalued and the momentum/growth stock backdrop remains favorable, CHGG stock should grind higher. Splunk (SPLK)Source: Michael Vi / Shutterstock.com % Gain Since Sept. 16: 28%Big data analytics company Splunk (NASDAQ:SPLK) was hit hard in mid-2019 on cash flow, growth, and margin concerns. But, Splunk reported third quarter numbers in November that put those concerns to ease. SPLK stock has since sprinted to all time highs.Although the valuation on SPLK stock seems somewhat stretched here, most signs indicate that this rally will continue.First, Splunk is in the game of turning data into actionable insights. Current trends imply that demand for this service is surging. Not only did Splunk just report strong Q3 numbers that included 30% year-over-year growth, but Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) also recently acquired Fitbit (NYSE:FIT) in a data acquisition play, tennis players have recently started using big data to prep for matches and the real estate industry is getting in on the big data trend.Second, recovering business sentiment -- thanks to easing trade tensions -- should provide a lift to Splunk's revenue trends, since the higher business sentiment goes, the more those businesses spend on things like data, and the more money makes its way into the Splunk ecosystem.Third, Splunk is in the early stages of realizing the financial benefits of its recently launched Data-to-Everything platform. Building that platform has been a multi-year, multi-billion dollar commitment. That investment phase is over. Now comes the growth part. This transition should provide a lift to SPLK stock.I'm slightly concerned about valuation on SPLK stock up here. But, momentum stocks have a tendency to ignore valuation risks when they have full momentum. That's exactly what Splunk has right now. So, for the foreseeable future, shares should keep making new highs.As of this writing, Luke Lango was long TTD, ADBE, OKTA and CHGG. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Strong Buy Stocks That Are Bargains Right Now * 7 Excellent Bank Stocks Worth an Investment * 4 Small-Cap, Big-Dividend Stocks The post 5 Momentum Stocks to Buy on the Rebound appeared first on InvestorPlace.
In the investment world, there's a lot of debate surrounding technical analysis. Some fundamentalists call technical analysis "hocus pocus" and think there's nothing to it. Other traders, however, attest to the "price is truth" mantra, and believe that technicals give you the most insight about how and when to buy a stock.I'm not here to settle this decades-old debate.Rather, I'm here to do two things. First, I'll give my personal two cents on the matter. Technicals don't drive stocks. Fundamentals do. But, there's enough information embedded into price action -- and enough money out there paying close attention to technicals -- that technical indicators can give investors very strong and accurate buy/sell signals.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSecond, I'd like to highlight recent academic research from Professor Shu Feng of Boston University and Professor Na Wang and Professor Edward Zychowicz of Hofstra University. Analyzing data from 1993 to 2010, they found that technical indicators tend to perform better when sentiment is high, versus when sentiment is low.Right now, market sentiment is high. The S&P 500 has rallied an impressive 4% over the past month alone to all time highs, and every investor sentiment reading has moved higher over the past few weeks. * 7 Silver and Gold Stocks to Buy That Offer Contrarian Upside Considering that technicals do matter, that technical analysis works better during periods of high investor sentiment and that investor sentiment is presently high, the implication is clear. It's time to start buying stocks with strong charts and favorable technical indicators. Stocks to Buy with Great Charts: Skechers (SKX)First up, we have athletic apparel maker Skechers (NYSE:SKX).The 2019 chart for SKX stock is pretty clean and impressive. All year long, the stock has been on a steady uptrend, with well-defined support and resistance lines. Both of those lines have held multiple times, so barring some drastic change, they should keep holding for the foreseeable future. Assuming they do, the most likely path forward for SKX stock is to keep rallying until it hits its resistance line at around $45.The fundamentals support further upside in SKX stock, too. Consumer attitudes are improving, and consumer spend this holiday season will likely be very strong amid easing trade tensions, re-accelerating economic activity, and still healthy labor market conditions. At the same time, athletic apparel tailwinds remain alive and well, and the Skechers growth narrative (over 15% revenue growth last quarter) remains equally vigorous.Still, SKX stock trades at a huge discount to its sector and peers, and therefore, has plenty of room to keep moving higher, propelled by a healthy combination of profit growth and multiple expansion. Trade Desk (TTD)Second, we have programmatic advertising leader Trade Desk (NASDAQ:TTD).The chart on Trade Desk implies that this stock is in the early stages of a big rebound. Specifically, TTD stock plunged into technically oversold territory (Relative Strength Index below 30) in late September. It has only done this twice before over the past year. Both times, the stock proceeded to bottom, reverse course and head substantially higher over the subsequent few months. It looks like the same thing is happening this time around, as TTD has bottomed and reversed course in October/November. If history holds up, shares should continue to trend higher.The fundamentals underlying TTD stock are equally bullish. This company is pioneering the future of advertising, which is the usage of data, algorithms and machines to automate and optimize the ad transaction processes. This market, dubbed the programmatic advertising market, projects to grow by leaps and bounds as automation becomes more and more globally prevalent. Trade Desk will similarly grow by leaps and bounds in the long run. Near-term weakness is nothing more than noise for this long-term winner. * 10 Cheap Stocks to Buy Under $10 Plus, it looks like that near-term weakness is now fading out, which could mean that the coast is clear to buy the dip in TTD stock. AT&T (T)Third, we have telecom giant AT&T (NYSE:T).The chart on T stock implies that shares are in the midst of a breakout which will persist until about $45. Specifically, T stock broke a multiyear downtrend in early 2019. Ever since, the 20-day moving average has surged above the 50-day moving average, and both have surged above the 200-day moving average -- a favorable dynamic which implies building momentum in the stock. At the same time, multiyear resistance doesn't arrive until around $45, so barring any drastic changes. Thus, T stock looks like it's charting a course for that level.AT&T's fundamentals have similarly "broken out" in 2019. That is, this is a company which has been plagued by cord-cutting headwinds over the past several years. But AT&T is finally responding to those headwinds by building out a direct-to-consumer streaming service, HBO Max, which is set to launch in 2020. The expectation is that success in the streaming vertical will help offset weakness in the linear video vertical. Meanwhile, 5G coverage is going mainstream in 2020, and that should provide a boost to AT&T's wireless business.Overall, there's a lot to like about T stock here, and improving fundamental and technical trends imply that the 2019 breakout rally in shares isn't over just yet. Under Armour (UAA)Fourth, we have another athletic apparel maker, Under Armour (NYSE:UAA).The chart for UAA stock shows a stock which has been oversold and is due for a bounce-back soon. The technical buy signal on Under Armour over the past year has been buy when UAA stock drops below $18 and when the Relative Strength Index drops below 30. Right now, UAA stock is very close to flashing that buy signal, with shares below $18 and the RSI only a hair above 30. Once RSI drops below 30, history suggests UAA stock will bounce back in a big way.Fundamentally, the recent sell-off in UAA stock also seems overdone. Sure, this is a slow-growth company with some brand identity, executive and accounting issues. But, they are still a very important brand in a very important and rapidly growing athletic apparel market, with margins that are making significant upward progress.Considering all that, the long-term earnings power here says that UAA stock is worth a lot more than $17. * 7 Tech Stocks to Buy for the Rest of 2019 The implication? Be ready to buy this dip. UAA stock won't stay down here for long. Okta (OKTA)Fifth, we have cloud security company Okta (NASDAQ:OKTA).The story that OKTA's chart tells is one of a stock that is breaking out after a brief period of consolidation. Okta has been a very strong stock. It spends very little time in oversold territory. But every once in a while, valuation friction rears its ugly head and OKTA stock does dip into oversold territory. See late 2018 or late 2019.But with both the Relative Strength Index and stock rebounding, it appears OKTA is breaking out. The last time a breakout like this happened, OKTA stock marched from $60 to $140 in a matter of months.Fundamentally, everything here checks out. This is a 50%-plus revenue growth company disrupting a multi-billion-dollar (and still growing) cybersecurity space with a one-of-a-kind, identity-based solution. Gross margins are huge (over 70%), so as long as revenue growth drives positive operating leverage in the long run, Okta has an opportunity to produce huge profits at scale.Nothing about these fundamentals has changed over the past few months. OKTA stock just got hit by some valuation headwinds. Now, those headwinds have passed, and shares look ready to get back to their winning ways. Chegg (CHGG)Sixth, we have connected learning platform Chegg (NYSE:CHGG).On the technical side of things, Chegg appears to be in the very early innings of a multi-quarter breakout. CHGG stock has been hit hard recently. But it has also shown signs of strength ever since a strong Q3 earnings report. This recent strength has propelled the stock's 20-day moving average above its 50-day moving average for the first time in a few months. This bullish crossover signal has materialized just four times over the past three years. Each time, it preceded a huge move higher in CHGG stock.On the fundamental side of things, Chegg's strong Q3 earnings report confirmed that nothing has changed about this company's fundamentals. Students still need academic help, and they are still seeking for that help through on-demand, connected learning platforms. In that space, Chegg remains unrivaled, and students continue to swarm onto the Chegg platform. Revenues, margins, and profits are all moving higher. * 7 Great High-Yield Stocks With Payouts Over 5% With the fundamentals still rock-solid and the technicals pointing to a big move higher, I think now is the time to double down on CHGG stock. Etsy (ETSY)Last but not least on this list of stocks to buy with great charts is specialty e-commerce marketplace Etsy (NASDAQ:ETSY).The technical picture on Etsy implies that you have a really oversold stock -- one running into some big support -- that's due for a nice relief rally soon. Thanks to a convergence of headwinds, including disappointing earnings, ETSY stock has dropped into significantly oversold territory. Indeed, the RSI has only been this low on ETSY once before since 2016. At the same time, shares are running into multi-month support at $40. This combination of big support and dramatically oversold conditions should spark a recovery rally in ETSY stock.The fundamentals here are weakening. Growth is slowing, and margins aren't moving higher like they used to. Still, this is a 20%-plus volume growth company in a secular-growth e-commerce marketplace, with margins that are largely stable. In other words, it's still a very good growth company with a favorable financial profile.The valuation today doesn't seem to reflect this. As such, buying the dip seems like the smart move.As of this writing, Luke Lango was long SKX, TTD, T, OKTA, CHGG and ETSY. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Silver and Gold Stocks to Buy That Offer Contrarian Upside * 7 Earnings Reports to Watch Next Week * 5 Online Retail Stocks to Buy on the Dip The post 7 Stocks to Buy With Great Charts appeared first on InvestorPlace.