The Trade Desk rises, Wall Street sees evidence of share gains
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The Trade Desk (NASDAQ:TTD) shares rose in pre-market trading on Thursday, erasing earlier losses, after the advertising technology company posted second-quarter results and guidance that prompted Wall Street analysts to believe the company is gaining market share.
Wells Fargo analyst Brian Fitzgerald, who has an overweight rating and $100 price target on The Trade Desk (TTD) shares, said the company "bucked the lackluster trends" seen elsewhere, as revenue accelerated and the company had strong incremental margins, resulting in higher-than-expected adjusted EBITDA.
Additionally, Fitzgerald also noted that spending has accelerated, the company's management pointed to "improving" visibility, with a strong exit to the quarter and strong start to the next period. The Trade Desk (TTD) is also making improvements on productivity, as operating expenses slowed down to 22% year-over-year, down from 41% in the first-quarter, and the connected TV segment aided the quarterly results "by a wide margin."
Evercore ISI analyst Shweta Khajuria raised her price target to $100 from $75 and reiterated her outperform rating after the results. 
"The strength in Q2 was driven by ongoing share gains and successful execution across CTV & Retail Media," Khajuria wrote in an investor note. "The company pointed to strength in Auto, Food & Drink, and Home & Garden offset by below average trends in Shopping and Business. Management pointed to improving visibility and advertiser sentiment throughout the quarter."
During the second-quarter, The Trade Desk (TTD) earned 28 cents per share on an adjusted basis, as revenue came in at $464M. Analysts were expecting earnings per share of 26 cents per share on revenue of $455.07M.
Looking to the third-quarter, the company expects sales to be at least $485M, above the consensus estimate of $480.51M.
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