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Summary

• The Trade Desk has endured its steepest selloff in years, driven by worrisome competitive threats and fears about potential big customer renegotiations.
• Major clients Omnicom and Publicis are auditing service agreements, while Amazon's DSP intensifies pricing and data competition, challenging TTD’s premium take rate.
• Despite margin pressure and slowing growth, TTD maintains >25% free cash flow margins and is priced at 11x forward earnings, with 16% EPS growth expected.
• I finally upgraded TTD stock to buy, viewing the $20 level as a credible bottom amid washed-out sentiment and resilient buyer support.
• Looking for a helping hand in the market? Members of Ultimate Growth Investing get exclusive ideas and guidance to navigate any climate. Learn More »

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The Trade Desk: More Bad News As Big Customers Show Concerns Over Fees

Investors in The Trade Desk, Inc. (TTD) have endured the worst selloff ever in the past 5 to 6 years, and not

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of GOOGL, AMZN, META either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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