The shopping board is a great company, but I’m not buying stocks Motley fool

Trade table (TTD 1.33%) It has long been an independent alternative to technical giants in the advertising industry. With the Connected TV (CTV) on the rise, retail media is rapidly expanding, and advertisers are increasingly striving for transparency, the company has carved the niche as a demand platform-SID (DSP). Its high maintenance of customers and constant use of business with residential power.

However, if I respect the company, I do not think that shares are a purchase at the moment. There is not a balance of reward risk between competitive pressures, challenges for implementation and appreciation.

Let’s unpack why.

Growth is firm but by no means flawless

For most of the last decade, the shopping board has built a reputation for consistency. Rutinery has overtaken expectations and supplied more than 30 direct neighborhoods of reverse rhythms. This lane ended at the end of 2024, when the shopping board announced its first returned lady in more than eight years.

Management returned quickly. In the second quarter of 2025, income increased by 19%year -on -year, indicating that the company remains resistant to the demanding advertising market. However, the lady served as a reminder that no company – even a trademark – can perform flawlessly.

To clarify this, the company still contributes to enviable results. The remains remain well Abovers 95%and advertisers continue to include the use of the Trades platform. The aim of innovation, such as Kokai, is to increase more efficient campaigns by deep learning to print scoring, optimize menus and budget contribution. These advances could strengthen the design of the company.

Yet, flawless narrative burst. Investors who have accepted almost perfect consistency now have to consider the risks of future bumps.

Competition is increasing

The shopping board will be built as a neutral platform for advertisers. This neutrality is valuable, but the advertising ecosystem moves quickly and the rivals with the scale increase the bets.

Amazon became the most urgent threat. Her advertising income now exceeds $ 50 billion, driven by retail media and streaming. A recent partnership with Netflix It provides direct access to some of the most premium CTV inventories available. This is a heavy wound for a shopping board, although it is also a partner of the Netflix-IT platform (DSP), which means that the competition is deepening.

Alphabet and MetaMeanwhile, it continues to dominate the digital commercial market with its extensive data on the audience. By inserting artificial intelligence (AI) directly focuses on their target skills and improve the return on investment (King) for advertisers. These brick gardens already control huge pools of the user’s attention and the protective table must compete by offering transparency and range of the cross channel.

The opportunity outside the brick garden remains great, especially in the CTV and retail media. But as competitors create their own advantages, the challenge of Trade Desk is growing: Mainain Livage and proven that it can provide unique value advertisers elsewhere.

His award leaves a small pillow

Even after the sweater, the trader is traded on a steep multiple. The shares change their hands at approximately 60 times the income and about 9 times the sales (at the time of writing). These levels still assume strong growth and sustainable ditches.

A high multiple is not a problem when the company lands overcomes and extends its competitive leadership. But with the re -risk and intensive competition, the shares leave a small space for a mistake. Although the shopping table is constantly growing, investors buyers at today’s award could face modest returns if they compress more.

In other words, society may not only work well – it must make today’s valuation sense to make sense.

What could change the picture?

Despite my certainty, I stay on the bull’s protection table. Several developments could lean the investment case more positively:

• Proven AIT -controlled results: Kokai has potential, but advertisers want clear evidence of the king. If the management demonstrates a measurable improvement in the performance of the campaign, it would strengthen the value of the platform.
• More attractive input price: Lower valuation could restore the attractive profile of the risk of reward, especially if the basic means remain strong.

What does this mean for investors?

The shopping board remains a company I admire. It provides sticky relationships with customers, strong use and constant innovation. However, admiration is not automatically performed until the purchase recommendation.

Since Amazon is pushing heavier into streaming ads, Google and Meta double on AI and still stock prices, I see more risks than rewards at current levels.

For investors, it can be the best step to keep the shopping table on the guard and wait for a more attractive price or stronger evidence of competing profits. Sometimes it is the hardest – but Smartset – the decision to wait.

Lawrence NGA has no position in any of these shares. Motley Beble has positions and recommends alphabet, Amazon, Meta Platform, Netflix and Trade Desk. Motley fool has a publication of politics.