The Trade Desk (TTD): Bullish Breakout
The Trade Desk's stock (TTD) experienced a notable move on Thursday, April 17th, 2025, breaking above a significant resistance level. This development comes after a challenging period for the advertising technology company, with the stock having declined sharply by approximately 60-65% since reaching an all-time high in December 2024.
The downturn in TTD's share price began to accelerate following its fourth-quarter earnings report in February 2025, which, despite showing year-over-year revenue growth, missed internal expectations. This was compounded by a broader market sell-off that further pressured the stock.
However, recent major legal news concerning Alphabet (GOOGL) appears to be a significant positive catalyst for The Trade Desk. On April 17th, 2025, a federal court judge ruled against Alphabet in a key antitrust lawsuit, specifically identifying the company as a monopoly in the advertising market. Any regulatory restrictions or changes imposed on Google's advertising practices as a result of this ruling are widely expected to benefit competitors like The Trade Desk, which operates as an independent platform for digital advertising buyers.
The Trade Desk has also been increasingly leveraging artificial intelligence (AI) within its platform, notably with its Kokai AI engine, to enhance advertising performance and accelerate growth. While the rollout of Kokai has faced some reported implementation challenges, the company continues to invest in and highlight its AI capabilities as a key differentiator.
Considering the substantial price depreciation in TTD shares over the preceding months, coupled with the favorable implications of the Alphabet antitrust ruling and the ongoing development of its AI platform, the technical breakout observed on April 17th suggests the potential for a sustained upward movement.
Based on technical analysis, a near-term upside target of $63 appears achievable, representing a potential increase of around 25% from the stock's trading levels around the time of the breakout. This technical signal could be the precursor to a more significant rally for The Trade Desk.
