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When Opportunity Knocks

April 16, 2024
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Wiko Steyn
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Wiko Steyn

Core Fund Update 6: #16 of 20 stocks added

Snap is an unprofitable social media stock which fell more than 40% yesterday after their management warned that they might miss guidance. This sent the whole Ad Tech market crashing down. Dissecting the sector and looking for quality companies might reveal some opportunities.

 

New Stock

The Trade Desk is the leading independent demand-side platform (DSP) which allows advertisers to buy and manage their digital advertising campaigns. The Trade Desk brings a more data-driven approach to ad buying with their core offering of programmatic advertising.

The Trade Desk offers advertisers the ability to buy ads for the Rest of the Internet.

This is one of those companies you always wanted to own but the valuation was holding you back. The reason why these companies are usually expensive is because they are the clear leaders in their industries and for that, you have to pay a premium. Is The Trade Desk cheap today? Nope, certainly not with a forward P/E of 42 and a EV/S of 19 no one can argue that it is cheap, but they have a visionary CEO and excellent financial metrics which should lay the foundation for continued growth.

Bull Thesis: This company is well-positioned to benefit from the secular growth in programmatic advertising.

 

Portfolio Update Summary

  • Buy $500 TTD at $41.05
  • Buy $250 MSFT at $255.45


 

Disclosure

This article is not financial advice and is based on the opinion of the author. The $20K in the Core Fund is not real money and only a demonstration of a typical portfolio. This is an actively managed portfolio, where we will buy and sell positions as we deem fit without any regard for taxation. Remember, all selling of stocks triggers a tax event in most countries and it is the investors personal responsibility to always remain tax compliant.


 


 


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