Tesla and Trade Desk: Analysts Eye Major Upsides Amid Decline

Investors are concerned as Nasdaq dips 8% since February. However, analysts suggest buying Tesla (TSLA) with a 136% upside potential and Trade Desk (TTD) with 124%. These insights could lead to stock fluctuations based on upcoming market strategies and economic elements.

Date: 07-03-2025

AI Rating: 5

Investor Outlook: The report highlights critical stock movements for Tesla and The Trade Desk during a turbulent Nasdaq market. While the Nasdaq Composite has declined by 8% since its February peak, promising upside potentials for these companies offer a glimpse of hope for investors seeking to capitalize on current valuations.

Tesla's Performance: Tesla recorded disappointing results with a 2% revenue growth to $27.5 billion. The report indicates a contraction in operating margins by 2 percentage points and an overall 3% increase in non-GAAP earnings per diluted share, reaching $0.73. Tesla's performance in the electric vehicle market has worsened with double-digit declines in unit sales across key regions. Despite these challenges, Wall Street anticipates a 16% increase in adjusted earnings in 2025, suggesting a potential recovery but emphasizing Tesla's risky investment status.

The Trade Desk's Situation: The Trade Desk's revenue grew 22% to $741 million, though it fell short of the expected $756 million. Nonetheless, non-GAAP earnings increased by 44% to $0.59 per diluted share. Wall Street forecasts 8% adjusted earnings growth in 2025 despite the revenue shortfall, reflecting a cautious outlook on valuation as it stands at 40 times adjusted earnings.

Analysts comment on the analytical leader’s reliance on AI enhancements across its platform, suggesting potential for future growth as clients adjust their investments toward data-driven strategies. Overall, both Tesla and Trade Desk present intriguing yet risky investment opportunities.

Stocks: TSLA TTD