Trade Desk Inc. (NASDAQ:TTD) shares edged lower 1.32% on Monday despite posting better than expected Q2 results. The company reported fiscal Q2 non-GAAP earnings per share of $0.18, beating the consensus Street estimates by $0.05. In addition, its GAAP EPS of $0.10 also outperformed the average analyst expectation by $0.05, while revenue beat estimates by $17.18 million despite growing by 100.9% to $280 million.
Furthermore, Trade Desk posted a Q2 adjusted EBITDA of $117.94 million, compared to its guidance of $84 million. The company also expects its third-quarter revenue at about $282 million, slightly better than the average analyst expectation of $274.75 million.
Why buy Trade Desk shares in Q3 2021?
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Although the Trade Desk stock trades at a sleep price-earnings ratio of 170.71 and a forward P/E ratio of 114.97, its exciting growth story could pay off significantly in the future.
Analysts expect Trade Desk earnings per share to grow by 118.30% this year and at an average annual growth rate of 32% over the next five years. Therefore, although value investors may find the TTD stock expensively valued, growth investors could be looking to pounce ahead of the potential earnings growth this year and over the next five years.
As a result, Trade Desk shares could still advance in the coming months, making the stock an attractive option to add to your portfolio.
Technical overview: Trade Desk stock price forecast for August 2021
Technically, Trade Desk shares seem to have recently pulled back after rallying to retest current 5-month highs of about $86.74.
The stock had advanced to overbought conditions in the 14-day RSI before the pullback. Therefore, it could present an attractive opening for growth investors to buy.
As such, traders can target potential rebound profits at approximately $90.78 or higher at $97.24. The key support levels are $74.63 and $67.36.
Bottom line: the catalyst for buying TTD stock price rebound
Trade Desk shares’ latest pullback presents an opportunity to buy the stock ahead of an exciting growth story. In addition, although the stock seems steeply priced at the current valuation multiples, its fiscal Q2 revenue and earnings beat could provide a short-term boost, pushing the share price higher.
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