I don’t know about you, but I’ve been waiting for an opportunity to buy The Trade Desk. Hard to believe, but the last opportunity was back in late October.
At the same time you never want to buy into strength. The old Wall Street saying goes, “Buy Weakness and Sell Strength.”
The Trade Desk was due for a pull back and that’s exactly what Christmas delivered. Since then price has dropped by about 17%.
As I write this post the stock is trading at $788.50 per share. With this in mind, it is common for stock prices to gravitate to whole numbers. So, it would not be surprising to see a $775 or a $750 price handle.
We could be in for a period of consolidation, but in reality, the next quarterly earnings (sometime in February 2021) will be key.
Conclusion
The Trade Desk is still an unknown company. More importantly, the opportunity still exists to get in early before the masses catch on.
For sure, Wall Street traders and portfolio managers keep accumulating the stock, driving the price higher.
Opportunities to buy the stock on weakness have been few and far between. Regardless, the Trade Desk is a force to be reckoned with.
For more information be sure to checkout my previous post on the company.
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