<div id="readability-page-1"><div> <h2>Key Points</h2><ul><li>The Trade Desk still operates in a growing market.</li><li>This one signal matters more than everything else.</li><li>Where advertisers choose to spend will ultimately determine the stock's fate.</li><li>10 stocks we like better than The Trade Desk ›</li></ul>Some stocks fall because their businesses break down, while others fall because their investment story becomes harder to believe.The Trade Desk (NASDAQ: TTD), once a darling among growth investors, sits in the second category. The stock has dropped sharply from its highs, even though the company is still growing. That gap creates an interesting setup: Real potential upside, but only if this one key piece of the story holds.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an &#34;Indispensable Monopoly&#34; providing the critical technology Nvidia and Intel both need. Continue »If it does, this stock could still become a multi-bagger from here. If it doesn't, the stock may never recover.<img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2NzE2OC90cmFkaW5nLTEuanBnJnc9NzAw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="369" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2NzE2OC90cmFkaW5nLTEuanBnJnc9NzAw"/>Image source: Getty Images. <h2>Why the upside still exists for The Trade Desk</h2>The Trade Desk operates in a digital advertising market that continues to expand.Advertising dollars keep shifting online thanks to multiple tailwinds, such as streaming, connected TV, and more. Besides, companies want better ways to measure whether their ads actually work.That's where The Trade Desk fits in. It helps advertisers decide where to spend and how to improve results across multiple platforms, all via its proprietary platform. To put the opportunity into perspective, global digital advertising is worth $1 trillion (and growing).So, the upside-down case is very simple. If more spending flows through the platform, the business can grow steadily over time.<h2>Why the risk is real, too</h2>However, the same trend that creates opportunity also brings competition. Companies like Amazon, Alphabet, and Meta don't just participate in advertising -- they control large parts of it. They own user data, ad space, and measurement tools, all in one place. Those closed ecosystems give them powerful advantages.The Trade Desk takes a different approach. It sits in the middle, helping advertisers navigate across multiple platforms rather than locking them into one. More importantly, it doesn't own any inventory, so it can act purely in its customers' best interests.While that model works -- especially for customers who value transparency and return on investment -- allocating advertising budgets to large, closed platforms like Alphabet's Google can be more convenient, easily scalable, and potentially more measurable.That leads to the one question that matters most.<h2>The one thing that will determine the long-term success of The Trade Desk</h2>If we strip everything down, the investment thesis for The Trade Desk stock comes down to one simple factor: Are advertisers spending more on the platform over time -- not just staying, but increasing their budgets over time? This one trend will signal to investors whether the company remains in the digital advertising race.If spending rises, it tells you:<ul> <li>The platform delivers results.</li> <li>Advertisers see a good return on investment (ROI).</li> <li>Competition isn't taking share.</li> </ul>If spending slows, it tells a different story:<ul> <li>Budgets may be shifting elsewhere.</li> <li>The competitive pressure is real.</li> </ul>Essentially, we need to track customer retention rate and gross advertising spend trends over the coming quarters to determine the direction the business is taking. If those two metrics remain strong, the stock price will eventually reflect the business model's strength.<h2>What does this mean for investors?</h2>The Trade Desk stock has been under enormous pressure lately as its growth rate slowed, coinciding with the rise of major competitors like Amazon.But given the opportunity size, it will not be a winner-take-all market. At least, The Trade Desk has a valid case for coexistence with these big players, given its unique value proposition for advertisers.From here, the investment story becomes simpler and more demanding. Just watch where advertiser dollars go. If the dollar flow toward the platform continues to grow over time, the stock could see significant upside. But if advertising spend is stagnant, no amount of optimism will turn it into a multi-bagger.<h2>Should you buy stock in The Trade Desk right now?</h2> Before you buy stock in The Trade Desk, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and The Trade Desk wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $498,522!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,276,807!* Now, it’s worth noting Stock Advisor’s total average return is 983% — a market-crushing outperformance compared to 200% for the S&amp;P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of April 27, 2026. Lawrence Nga has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, and The Trade Desk. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. </div></div>

TTDU

The Trade Desk operates in a growing digital advertising market but faces significant competition from major players like Amazon and Google. The stock has dropped despite the company's growth, creating a potential upside if advertisers increase their spending on the platform. The key factor for its success is whether advertisers will allocate more budgets to The Trade Desk over time. If spending rises, it indicates strong performance; if it stagnates, the stock may struggle. Investors should monitor advertising trends closely before making decisions.

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The Trade Desk Is a High-Risk, But Potentially Multi-Bagger Stock -- But Only If This One Thing Goes Right