Stocks to Buy When the Market Crashes: The Trade Desk


David Gardner: Stock No. 4: the company is,
the fourth T, it’s The Trade Desk, ticker TTD. The Trade Desk, on September 26th, two days shy
of the end of September, was trading at $156 a share. Right now, it’s about $111,
down $45 a share. That equates to a 29% drop. This has been a wonderful stock.
Like the others, it’s a big-time winner. In the case of The Trade Desk, I first picked it
in February 2017, that’s almost two years ago, at $34. I just mentioned to you,
it’s dropped from $156 to $111. We’re still pretty happy
with that $34 cost basis. And three months later,
in May of last year, it had risen to $52. I re-recommended it right there. In both cases, it’s up, on the one hand, 250%;
on the other, 138%, in less than two years. This has been a great winner. What are
two things that I like about The Trade Desk? The first is, I really like the CEO. Jeff Green is one of those
classic visionary founder types. Highly eloquent, feels like the
smartest guy in the room for his industry. If you’ve never heard of The Trade Desk before,
you might be wondering, “What’s being traded?” The answer is, The Trade Desk offers
a platform where people who want to advertise come on and bid for where they’re
going to locate their ads. It’s kind of like eBay,
where you have buyers and sellers. But in this case, it’s called
programmatic ad buying. Instead of doing it the old way, let’s say
through an agency, where you would find out, what are the rates and
where are you guys going to put me? You actually go right into the platform and
you bid against others to have your ad seen in this or that site. It’s a brilliant use of the internet where
there’s already so much advertising, so it makes a lot of sense to me. And it makes a lot of sense when you have someone
like Jeff Green steering this company, the founder. It makes a lot of sense to me that it’s been
such a winner, and I expect that it will be a winner going forward. Again, the stock
is down 29% in less than two months. The second thing I like about The Trade Desk is,
I’m not going to go through my six traits of a Rule Breaker stock,
but it is a true Rule Breaker. The six traits that I’ve written about for
years, that help me find stocks, one of them is top dog and first mover
in an important emerging industry. This is kind of that type of a company. This is the top dog and first mover in a very
relevant industry, ad buying around the internet, doing it through a programmatic platform.
This is the leader. It’s kind of like eBay, for what it was doing back in the day. This is a true Rule Breaker,
and I like that a lot about The Trade Desk, including its outstanding
performance overall.

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