288.99 +5.78 (2.04%)
After hours: 7:50PM EST
|Bid||287.00 x 1000|
|Ask||288.99 x 800|
|Day's Range||269.22 - 288.98|
|52 Week Range||173.60 - 323.78|
|Beta (5Y Monthly)||2.71|
|PE Ratio (TTM)||139.31|
|Earnings Date||Feb 26, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||277.58|
The Trade Desk (TTD) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Shares of electric vehicle (EV) maker Tesla (NASDAQ:TSLA) have received all the hype and attention lately because the stock has been on a torrid run, wherein shares have more than tripled over the past six months. That's a jaw-dropping gain, and many investors can't believe it. After all, over that same stretch, the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite are all up less than 20%.But -- and not to take anything away from this record rally in Tesla sock, which has been very impressive -- such huge rallies in growth stocks happen quite often.Shares of ecommerce solutions provider Shopify (NYSE:SHOP) nearly tripled from $120 to $360 during the first half of 2019. Also in the first half of 2019, streaming device maker Roku (NASDAQ:ROKU) saw its stock more than triple, as did social media company Snap (NYSE:SNAP). Shares of programmatic advertising leader The Trade Desk (NASDAQ:TTD) saw its stock triple from $50 to $150 during a six month stretch in 2018. MongoDB (NASDAQ:MDB), Beyond Meat (NASDAQ:BYND), Canopy Growth (NYSE:CGC) and Advanced Micro Devices (NASDAQ:AMD) have all had stretches over the past few years where they've tripled in a six month span.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn other words, while the record rally in Tesla stock is impressive, it's not unprecedented. There are a handful of growth stocks that have done it before. And, there are handful of growth stocks that have been just as hot as Tesla over the past six months. * 7 Biotech Stocks to Buy That Could Beat the Coronavirus Without further ado, let's take a deeper look at those red-hot growth stocks. Growth Stocks That Are as Hot as Tesla: Hovnanian Enterprises (HOV)Gain in past 6 months: 325%At the top of this list, we have a big surprise. Homebuilders aren't normally considered growth companies. Nor are homebuilder stocks often big gainers. But, shares of U.S. residential homebuilder Hovnanian Enterprises (NYSE:HOV) are up a whopping 325% over the past six months, making Hovnanian stock one of the hottest stocks in the market over that stretch.How did a U.S. residential homebuilder get so hot? By replacing bankruptcy fears with promising growth potential.Long story short, many investors thought that Hovnanian was on the verge of bankruptcy earlier this year. The homebuilder hadn't reported a positive revenue growth quarter since 2016, and was sitting on a heavy debt load that did not look serviceable in the face of declining demand trends. Hovnanian's stock price, which sat at $5 in August 2019, reflected this dour reality.Then, Hovnanian reported third-quarter results, which included a 5.5% rise in revenues. The U.S. homebuilder followed that up with 16% revenue growth in the fourth quarter, amid aggressive community count expansion. At the same time, management successfully refinanced a bunch of debt and eliminated all debt maturities until 2022. With revenue growth back in the picture and bankruptcy concerns moving into the background, Hovnanian stock took off like a rocket ship.Can the big rally continue? Probably. Hovnanian stock remains pretty cheap relative to other homebuilders. The U.S. housing market should continue to move higher in 2020, supported by low rates and strong labor market conditions. Although the best of this rally is over, there is likely more upside left. Cardlytics (CDLX)Gain in past 6 months: 201%One technology growth stock that has tripled alongside Tesla over the past six months is that of payment card analytics company Cardlytics (NASDAQ:CDLX), and with good reason.Cardlytics employs a pretty genius business model. They leverage credit and debit card data to pair marketers with consumers and power relevant and strong bank loyalty and rewards programs. In so doing, they are creating an ecosystem where consumers win (through relevant promotions), marketers win (through increased brand awareness) and banks win (through increased card spend and engagement).This business model is pretty new. But it's starting to take off, mostly thanks to its multi-faceted benefits. Over the past few years, Cardlytics has gone from one major bank partner -- Bank of America (NYSE:BAC) -- and 50 million active users, to three major bank partners -- adding JPMorgan (NYSE:JPM) and Wells Fargo (NYSE:WFC) -- and nearly 150 million active users.That's a lot of growth, and in sum, it has powered huge gains in Cardlytics stock, including a 200%-plus gain over the past six months. * 7 Heavily Shorted Stocks That Could Pop on a Short Squeeze Can the huge rally continue? Yes. Valuation friction is a problem. Cardlytics stock is not cheap. But, now that Cardlytics has partnerships in place with most major U.S. banks, they can easily leverage those partnerships to build out their portfolio of marketers, which will in turn increase how much consumers spend through the banking rewards programs, and push Cardlytics revenues and profits way higher. So long as those keep moving higher, so will Cardlytics stock. FuelCell Energy (FCEL)Gain in past 6 months: 400%Once a penny stock trading just north of 10 cents per share, FuelCell Energy (NASDAQ:FCEL) stock has surged 400% over the past six months on two big catalysts.First, the fuel cell power company signed a new, expanded joint development agreement with Exxon Mobil (NYSE:XOM), worth up to $60 million. Second, FuelCell started commercial operations of its 2.8 MW fuel cell project at wastewater treatment facility in Tulare, California. Strung together, these two major product catalysts pushed FuelCell stock from 25 cents in early November 2019 to nearly $3 by late January 2020.However, shares have taken a big step back since late January. FuelCell reported sub-par fourth-quarter numbers, in which revenues dropped significantly year-over-year, gross margins eroded, losses widened and what was supposed to be a $2 billion order backlog, came in at just $1.3 billion.Where does FuelCell stock go from here? It's tough to say. The company landed a few big contracts. But the numbers remain pretty ugly. If those numbers get better, then the stock will rebound. If they don't, shares will remain under pressure. As such, the best thing to do here is wait to see how next quarter's numbers come in. If they're good, buy into the rebound rally. If they're bad, stay on the sidelines. EverQuote (EVER)Gain in past 6 months: 180%Much like Tesla, online insurance marketplace operator EverQuote (NASDAQ:EVER) has delivered monstrous growth numbers over the past few quarters. And, much like Tesla stock, EverQuote stock has essentially tripled over the past six months on the back of these strong growth numbers.The growth narrative at EverQuote is pretty simple. You have an online insurance marketplace, which leverages consumer data to optimally match insurance buyers with insurance sellers, based on coverage options, pricing, location, etc. Theoretically, the more consumer data EverQuote has, the smarter its insurance matching algorithms get, and the better outcomes the EverQuote marketplace produces for both insurance buyers and sellers. Consequently, EverQuote's huge consumer data growth this year (quote requests rose over 80% last quarter) lays the groundwork for scalable growth over the next few years.As good as that bull thesis sounds, investors should tread carefully with EverQuote stock, mostly because there is a lot of controversy surrounding this company. That controversy includes: 1) a ton of negative consumer reviews across various sites claiming that all the company really does is sell "leads;" 2) some contradictory web traffic data from SimilarWeb; 3) a huge short interest and 4) a ton of insider selling. Further, even if you ignore those red flags, EverQuote stock is still very richly valued, and further upside looks limited even if everything goes right. * 10 Tech Stocks to Buy Now for 2025 As such, while EverQuote stock has been one of the hottest stocks on the market for the past six months, I doubt it will remain so for the next six months, too. Applied Therapeutics (APLT)Gain in past 6 months: 513%Last, but certainly not least, on this list of growth stocks that have been as hot as Tesla over the past six months is clinical-stage bio-pharmaceutical company Applied Therapeutics (NASDAQ:APLT).Applied Therapeutics has two main pipeline drugs, AT-001 and AT-007. From an investment perspective, AT-007 is the "less" important of the two, but still very critical to the company's growth narrative and almost entirely responsible for the stock's huge gain over the past few months. AT-007 treats galactosemia, a rare genetic metabolic disease caused by an inability to break down galactose. Because it's so rare, the opportunity here isn't large (only about 2,800 patients in America). But, it's still sizable, with Cowen estimating that peak sales of AT-007 could be $500 million.That's why, when Applied Therapeutics reported positive Phase 2 clinical trial results for AT-007 in January, the stock jumped. Indeed, most of this stock's 500%-plus trailing six month gain happened on the heels of the positive Phase 2 results for AT-007.What's exciting, however, is that the best may still be coming. AT-001 is the potential blockbuster hit, as it treats diabetic cardiomyopathy, a fairly common disorder impacting about 20% of diabetics, or around 77 million patients globally. At present, there is no approved therapy for diabetic cardiomyopathy. AT-001 has posted positive Phase 1 and Phase 2 clinical trial results and Phase 3 clinical trial results are due in 2021. If positive, that will provide a huge boost for this stock, since estimated peak U.S. sales for the drug are about $950 million.Big picture -- Applied Therapeutics is a red-hot biopharma company with two pipeline drugs, both of which have tremendous clinical momentum at present. If they sustain this momentum, Applied Therapeutics stock will keep marching higher.As of this writing, Luke Lango was long SNAP, TTD, BYND and CGC. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Utility Stocks to Buy That Offer Juicy Dividends * 10 Gold and Silver Stocks to Profit Off 2020's Fear Trade * 3 Top Companies That Should Be More Careful With Your Data The post 5 Growth Stocks That Are as Hot as Tesla appeared first on InvestorPlace.
Global advertising technology leader, The Trade Desk (Nasdaq: TTD), today announced the appointment of Matt Goldberg as Executive Vice President for North America. Based in The Trade Desk’s New York office, Goldberg will be focused on driving revenue generation and new client acquisition strategy.
Take a look at the opinions of e-commerce firm Shopify (NYSE:SHOP) and you'll encounter a growing chorus of dissenting views. Since the beginning of November, Shopify stock has jumped nearly 60%. Just since the beginning of 2020, shares have returned over 18%.Source: Paul McKinnon / Shutterstock.com Understandably, investors who are looking at this opportunity now are tempted but hesitant. Based on the company's most recent earnings report, Shopify stock traded at over 24-times sales. To put this into context, hot names like The Trade Desk (NASDAQ:TTD) and Square (NYSE:SQ) traded at far lower price-sales (P/S) ratios, at 14.6 and 6.2, respectively.Not only that, the current PS ratio for Shopify stock is around 38.6 -- again greatly exceeding the ratios for the other two stocks. Therefore, it's not unreasonable to believe that shares could experience a corrective pothole in the nearer term.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, a pothole is fundamentally what's at stake here. As you know, I don't base my investments on financial metrics for their sake alone. Instead, I look at megatrends, such as demographics and wholesale shifts in consumer behaviors. And, this latter engine is ultimately what's catalyzing Shopify stock.You don't need to look far to realize that brick-and-mortar retailers are undergoing dramatic changes thanks to consumers' fondness of online shopping. Most conspicuously, weaker companies in the space like Pier 1 Imports (NYSE:PIR) and drugstore chain Rite Aid (NYSE:RAD) face difficult roads ahead. Meanwhile, those physical retailers who are making it happen have developed their own online channels. * 7 Utility Stocks to Buy That Offer Juicy Dividends As one of the biggest megatrends, you don't want to step in front of this train. E-commerce is steadily taking a greater share of the total retail pie, and that will only intensify in the future. Shopify Stock Is Positioned for the E-commerce of TomorrowIf you haven't picked up on it already, one of my investment philosophies is to go where the money will be -- not where it is right now. That's one of the reasons why I'm not panicking about the coronavirus. As awful as this time is for the people and the families that are suffering, this crisis will thankfully fade.Unless you're strictly day trading, there's no point in making dramatic changes to your portfolio on a temporary event. Instead, it's an opportunity to build it on great stocks with strong upside narratives. And that's exactly how I feel about Shopify stock.If it corrects, it'd be a perfect opportunity to pick up shares on a discount. I've been a bull on the e-commerce firm for years because it exemplifies my philosophy of riding megatrends.You may not know or care about brands like Allbirds or Kylie Jenner. You may think that social media influencers like Jeffree Star and Shane Dawson have no influence. That's fine, but forgive my bluntness. It doesn't matter what you personally think. These names and others are in fact very influential and they're driving millennials and Generation Z to Shopify's e-commerce platform.It may be instructive to think about e-commerce not as a singular, giant entity -- but rather a progression. In the initial phase of e-commerce, companies like eBay (NASDAQ:EBAY) and Amazon (NASDAQ:AMZN) set up the groundwork. Essentially, they proved that online shopping could work.With that fact established, the second leg of the industry involves integrating lifestyle and fashion trends with direct-to-consumer relationships. This is where the role of social media influencers come in, giving brands "street cred." And, this is also why Shopify has invested heavily in social media partnerships. Undeniable Consumer MomentumAdditionally, the bullish case for Shopify stock doesn't merely involve speculation that younger consumers will push it forward. The hard data backs it up. Click to Enlarge Source: InvestorPlace.com Back in 2017, Shopify only had slightly over 8% of U.S. market share of e-commerce platforms. In 2018, that figure skyrocketed to 23%, and last year, market share increased substantially to 31%.In just a few short years, Shopify went from a minor player on the edge of e-commerce to owning nearly a third of U.S. market share. That's the kind of growth that you only see from large-scale shifts in consumer sentiment. More importantly, it implies that the competition is losing share in this pivotal race.Therefore, I'm not worried about any near-term chop in the share price. As for metrics like P/S ratios? I don't find them particularly useful for Shopify stock, as they miss the forest for the trees.Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Utility Stocks to Buy That Offer Juicy Dividends * 10 Gold and Silver Stocks to Profit Off 2020's Fear Trade * 3 Top Companies That Should Be More Careful With Your Data The post The Bull Case for Shopify Stock Is More Relevant Than Ever appeared first on InvestorPlace.
During Monday night's Mad Money program Jim Cramer talked about some streaming plays. Investors looking for a more enticing streaming play should also consider The Trade Desk Inc. , a platform that helps advertisers place ads on all of that streaming media. Shares of TTD are up 89% over the past year and Cramer said the stock is not done heading higher.
For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...
The Trade Desk, Inc. (NASDAQ: TTD), a provider of a global technology platform for buyers of advertising, today announced that it will release financial results for the fourth quarter fiscal year 2019 ended December 31, 2019 after market close on Thursday, February 27, 2019. The Trade Desk will host a webcast and conference call to discuss fourth quarter financial results at 2:00 P.M. Pacific Time.
Top stocks either act right after a breakout, or they don't. One way a stock acts right is by finding bullish support at the 50-day moving average.
The Trade Desk (NASDAQ:TTD) started off with a focus on advertising through internet-based platforms. It quickly grew to be an independent force to be reckoned with in the world of buying online advertising. Helping clients to buy and manage digital advertising campaigns on websites and social media sites like Facebook (NASDAQ:FB) has propelled TTD stock to massive 993% growth in value since the company went public in September 2016. For the next stage of growth, the company is looking to one of the hottest categories in tech: streaming video.Source: Shutterstock/ Bella Melo The twist is, The Trade Desk is counting on consumers to be overwhelmed by the sheer number of paid streaming services. As companies launch free, ad-based options to combat "subscription fatigue," The Trade Desk will be there to help clients buy advertising slots. Streaming TV Subscription Fatigue2019 will go down as the year that the battle for streaming TV dollars truly launched. Netflix (NASDAQ:NFLX) faced a flood of new competing services from some of the world's biggest media and tech companies. Notably, last fall Apple (NASDAQ:AAPL) launched Apple TV+ and Disney (NYSE:DIS) launched its Disney+ streaming service. The new services have resulted in fragmentation of content. Consumers can no longer see all their favorite shows on Netflix; if they want to watch Marvel movies, they also need a Disney+ subscription. The Office -- the most popular show on Netflix -- is leaving for Comcast's (NASDAQ:CMCSA) NBCUniversal Peacock streaming service.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWith all of these streaming video services, a new term is growing in popularity: subscription fatigue.Consumers signed up for Netflix to escape paying big monthly cable bills. But how many streaming video subscriptions are they willing to pay for before frustration sets in? * 7 Exciting Tech Stocks With International Flair Ad-Supported StreamingMedia companies are betting that consumers will be willing to sit through an ad or two, if it means they can access a streaming service for free. Perhaps the biggest (or at least highest profile) salvo in this new free streaming scheme was launched at the start of this week by NBCUniversal. The company announced its new Peacock streaming service, which will become the exclusive home of The Office, as well as other popular NBC shows including Parks and Recreation and Brooklyn Nine-Nine. Besides the expected paid subscription options, Peacock will be available as a free, ad-supported service for Comcast cable's 20 million customers. This is where there's opportunity for The Trade Desk, and corresponding upside potential for TTD stock. It's what the company refers to as Connected TV (or CTV), and The Trade Desk has a Connected TV service in place, ready to help advertisers buy and manage ads on streaming services. Advertising is already a growing business on Connected TV. Look no further than Roku (NASDAQ:ROKU) for proof. Many of the channels on that platform are free, ad-supported content. That advertising revenue was a primary driver of Roku's stock growth in 2019.In December, while retailers were focused on Black Friday sales numbers, The Trade Desk was tracking ad impressions for various platforms. And according to TTD's numbers, ad impressions for Connected TVs on Black Friday increased 105% compared to 2018.Last quarter, The Trade Desk reported Connected TV ad revenue grew 145% year-over-year. And the company has signed deals with Roku, Disney, Comcast and Amazon (NASDAQ:AMZN). It's a market expected to be worth over $10 billion by 2021, and TTD is there to help clients buy and manage advertising with its Connected TV system. * 10 Recession-Resistant Services Stocks to Buy Bottom Line on TTD StockWill 2020 be the year that The Trade Desk's CTV ad business takes off? And if so, will this have a material effect on the company's bottom line? The Trade Desk is betting this will happen, and its Connected TV system is in place to take advantage of the growing number of free, ad-based streaming video services. Investment analysts aren't entirely convinced. Among those polled by CNN Business, TTD stock is a consensus "buy." However, their median 12-month price target of $292.50 -- an upside of just 4.2% over the current $280.39 -- suggests they don't see that CTV ad business exploding this year. That being said, if free ad-based streaming TV takes off with consumers, it seems like only a matter of time before TTD reaps the benefits.As of this writing, Brad Moon did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks on the Move Thanks to the Davos World Economic Forum * Invest in America's Most Trusted Brands With These 7 Stocks to Buy * 7 Earnings Reports to Watch Next Week The post Trade Desk Stock Is Positioned to Ride the Streaming Video Wave appeared first on InvestorPlace.
Pivotal Research Group analyst Michael Levine lifted his price targets for Facebook, Alphabet, Twitter, Amazon.com, and three other internet stocks.
Gojek, Southeast Asia’s leading technology platform, and The Trade Desk (Nasdaq: TTD), a global advertising technology leader, launch an exclusive partnership to provide advertisers with unprecedented insight into the impact of their online advertising campaigns on offline sale, which can improve the efficiency of marketing decision to boost business growth. This partnership marks the first Online to Offline (O2O) measurement solution in Southeast Asia, launching initially in Indonesia.
(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 firstname.lastname@example.org;Naomi Nix in Washington at email@example.comTo contact the editors responsible for this story: Jillian Ward at firstname.lastname@example.org, 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...