What's Going On With The Trade Desk Stock Monday?

The Trade Desk Inc. (NASDAQ:TTD) shares are trading about 9% higher Monday as investors position themselves ahead of third-quarter earnings due after the close, with the revenue outlook, restructuring costs and a technical setup all drawing attention.

• Trade Desk shares are powering higher. Why are TTD shares rallying?

Earnings Preview & History

The Trade Desk is scheduled to report third-quarter earnings today, Nov. 9, after the market closes. Analysts estimate earnings per share of 25 cents along with revenue of $650.29 million. For the prior quarter, The Trade Desk reported adjusted earnings per share of 34 cents, missing the consensus estimate of 40 cents. The company also posted revenue of $715.06 million, missing the consensus estimate of $752.39 million. The company guided to third-quarter revenue of at least $650 million and adjusted EBITDA of about $160 million.

What to Watch: Revenue Trends, Cost Cuts and Q4 Outlook

Investors will be closely tracking whether revenue holds above the company’s own guidance. The Trade Desk guided to third-quarter revenue of at least $650 million, which would be a decline from the year-ago quarter, after second-quarter revenue of $715 million missed estimates and grew just 3%.

The Trade Desk said its second-quarter results didn’t meet its standard, and management said automotive and consumer packaged goods clients, about 25% of the business, were under pressure. Costs will be in focus too. The company announced in September that it would cut about 15% of its workforce, with restructuring charges of $39 million to $51 million expected in the third quarter, which could affect adjusted EBITDA, guided to about $160 million.

Management said adoption of its Joint Business Plans reached 217 clients in the second quarter, up 38% from a year earlier, so traders will look for more detail on that and on connected TV growth. The fourth-quarter outlook will matter most, with the stock down about 74% over the past year and analysts expecting revenue to fall about 12% in the third quarter.

Trade Desk Trades 10.6% Above 20-Day Average but 28.2% Below 200-Day, With Neutral RSI of 52.55

The Trade Desk is trading above its short-term trend gauges, sitting 10.6% above the 20-day SMA ($12.66) and 7.2% above the 50-day SMA ($13.07), which supports the idea that the latest bounce has traction. The bigger picture is still heavy, though, with the stock 6.9% below the 100-day SMA ($15.05) and 28.2% below the 200-day SMA ($19.50), keeping the longer-term trend pointed down.

RSI is the cleaner momentum read right now: at 52.55, it’s neutral, suggesting the stock isn’t stretched and still has room to move before becoming overheated. For non-technicians, RSI is a quick way to gauge whether recent buying or selling has become "too much, too fast," and this reading points to a more balanced tape than the panic seen in October when RSI dipped into oversold.

The moving-average structure still flags caution for longer-term investors because the 20-day SMA remains below the 50-day SMA, and the 50-day SMA is also below the 200-day SMA—classic bearish alignment. That said, the stock’s October swing low and 52-week low in October ($11.62) mark an important inflection area that traders will keep using as a reference for risk.

• Key Resistance: $15.50 — a nearby ceiling that lines up with a logical rebound-stall zone ahead of the 100-day moving average area
• Key Support: $12.50 — a nearby floor near the 20-day moving average zone where dip-buyers have recently shown up

The Trade Desk Shares Rush Higher

TTD Price Action: At the time of publication, The Trade Desk shares are trading 8.43% higher at $14.02, according to data from Benzinga Pro.

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