Investors Eye The Trade Desk and Wingstop Amid Nasdaq Drop

The Nasdaq Composite's decline raises investment opportunities. The Trade Desk and Wingstop stocks have dropped significantly, enticing long-term investors looking for discounted prices amidst market volatility.

Date: 14-03-2025

AI Rating: 6

Current Market Conditions: The Nasdaq Composite has dropped about 13% recently, indicating a market correction that has affected many stocks, including The Trade Desk and Wingstop. Corrections of this nature are common, typically occurring every two years, and can present buying opportunities for long-term investors.

The Trade Desk Analysis: The Trade Desk’s stock has fallen 53% from its 2025 highs after reporting earnings that did not meet expectations for the first time in 33 quarters. The stock lost over one-third of its value overnight following this announcement. Although its fourth-quarter sales growth of 22% missed expectations, this growth still exceeded the global advertising industry's growth rate and is projected to match market growth expectations in the next quarter.

The company's earnings yield and free cash flow yield are currently well above historical averages, indicating an attractive valuation. Despite recent setbacks, The Trade Desk continues to gain market share and benefits from significant growth potential in connected television and international expansion.

Wingstop Analysis: Wingstop’s shares have declined 31% due to a slight miss in analysts' sales expectations for Q4, even as it reported its 21st consecutive year of same-store sales growth. The drop led to a decrease in market capital to $6 billion, suggesting that the market has reacted strongly to the sales miss.

Despite the decline, Wingstop's growth potential remains significant, aiming to quadruple its store count over the long term. With recent sales growth and a solid pipeline for new locations, it presents a considerable investment opportunity at this discounted price.

Stocks: TTD WING