Cheap Stock Can Double This Year

last updated on

Cheap Stock Can Double This Year

This Cheap Stock Could Double This Year

Ever since the AI boom started in 2023, many stocks reached new highs. At the same time, there were also many victims of the AI.

But, this also means an opportunity to buy great stocks that are trading below their reasonable valuation. And one particular stock, which is very cheap right now, is The Trade Desk.

The Trade Desk

The Trade Desk is a special case as it is not something that is disrupted by AI. In fact, the company is disrupting itself through Kokai, an AI-powered platform for ad buying.

The new platform has mixed reviews, and many customers are now leaving it or scaling down their usage. But the good news is that The Trade Desk also knows the blunder it has made and is now working to fix it.

Additionally, the company is also facing fierce competition from Amazon, which has also captured some of the advertising market.

After all, Amazon has the actual data which tells it what the consumers are shopping for. So, this gives better results for the advertisers.

All of these have made it difficult for The Trade Desk to compete, and it has become one of the worst stocks on the S&P 500. The stock value is down by 70% from its ATH, but it also means the stock is available at a discount.

The stock price of the firm suggests it is trading at 18.5 times its forward earnings. Meanwhile, the S&P 500 index is trading at 22.1 times its forward earnings.

The good news amidst all of this is that The Trade Desk is actually making a comeback. In Q3, the revenue of The Trade Desk jumped by 18% y/y.

For the year 2026, the analysts think The Trade Desk can easily achieve a growth rate of 16%. So, if that turns out to be true, it means the The Trade Desk stock can easily bounce back in 2026.

Trending Stories