TTD Rallies on OpenAI Partnership Talks, Stock Still 80% Below Record High

About this video

• Video Title: TTD Rallies on OpenAI Partnership Talks, Stock Still 80% Below Record High
• Channel: Schwab Network
• Speakers: Marley, Rick Dat
• Duration: 00:06:26

Overview

This video discusses the recent rally of The Trade Desk (TTD) stock, driven by reports of potential partnership discussions with OpenAI for advertising sales. It analyzes TTD's position in the digital advertising market, its challenges including economic uncertainty and competition from tech giants, and its technical chart indicators. The segment also touches on OpenAI's significant funding and revenue projections, and examines the options activity for TTD.

Key takeaways

• TTD Stock Rally: The Trade Desk's stock experienced a significant rally (up to 20%) following a report that OpenAI held discussions with the company regarding advertising sales.
• OpenAI's Growth and Funding: OpenAI is projecting substantial revenue for 2030 and has recently secured significant funding from major tech companies like Amazon, Nvidia, and Soft Bank.
• Market Challenges for TTD: The Trade Desk operates in a niche digital advertising space and faces strong competition from established players like Google, Meta, and Amazon. The company has also seen decreased ad spending due to economic uncertainty, particularly in the auto sector.
• Technical Analysis: Prior to the recent rally, TTD was in a downward-sloping channel and significantly below its previous highs. The stock has struggled to recapture key price levels like $43. Current support levels are noted around $29.50, with resistance near the 63-day quarterly EMA at approximately $32.50.
• Options Activity: There was a notable increase in options volume for TTD, with significant open interest in longer-dated contracts. A specific large trade involving buying March calls appears to have been a closing trade, resulting in a substantial loss for the trader.