The Trade Desk Inc. (NASDAQ:TTD) shares are trading higher on Tuesday. The Nasdaq is up 0.57% while the S&P 500 has gained 0.45%.

• Trade Desk stock is showing exceptional strength. Why are TTD shares rallying?

Technical Levels In Focus

The Trade Desk trades 8.7% above its 20-day simple moving average (SMA). However, it remains 21.8% below its 100-day SMA. The Relative Strength Index (RSI) sits at 47.59.

This indicates the bounce is not yet overheated. The MACD is at -0.5154 versus a signal line of -0.9945.

Short interest in The Trade Desk decreased to 46.29 million shares during the last reporting period. This represents 10.57% of the company’s float. At an average daily volume of 20.00 million shares, short sellers would need 2.31 days to cover their positions.

CEO Green Discloses $148M Stake Increase

CEO Jeffrey Terry Green shocked Wall Street by disclosing a significant personal stake increase. Between March 2 and March 4, Green accumulated 6,398,089 Class A shares.

The transactions totaled approximately $148.1 million.

OpenAI Partnership Talks Fuel Optimism

Market sentiment is also rising on reports from The Information. The outlet suggests OpenAI is in early talks with The Trade Desk.

The discussions center on using TTD's programmatic platform to sell ads.

Earnings & Analyst Outlook

Looking further out, the next major catalyst for the stock arrives with the May 7 (estimated) earnings report.

  • EPS Estimate: 24 cents (Down from 33 cents year-over-year)
  • Revenue Estimate: 68 cents Billion (Up from 62 cents Billion YoY)
  • Valuation: P/E of 30.1x (Indicates premium valuation relative to peers)

The stock carries a Buy Rating with an average price forecast of $49.21.

Recent analyst moves include:

  • Wedbush: Downgraded to Underperform (Target $23 on March 6)
  • Piper Sandler: Neutral (Lowers target to $28 on March 2)
  • Keybanc: Overweight (Lowers target to $35 on March 2)

TTD Stock Price Activity: Trade Desk shares were up 4.83% at $28.39 at the time of publication on Tuesday, according to Benzinga Pro data.

Photo: Piotr Swat / Shutterstock