10 Stocks with Potential to Explode in 2025

6. The Trade Desk, Inc. (NASDAQ:TTD)

Average Upside Potential: ~101.9%

Number of Hedge Fund Holders: 63

The Trade Desk, Inc. (NASDAQ:TTD) operates as a technology company. Truist Securities expressed its confidence in the company’s stock, maintaining a “Buy” rating and a price objective of $130.00. As per the analyst, the issues with Kokai remain temporary instead of structural, with anticipations for quicker adoption improvement. The analyst has also acknowledged Amazon’s DSP as a rising competitor in the broader advertising technology space. That being said, The Trade Desk, Inc. (NASDAQ:TTD)’s strong return on ad spend performance, independence, cross-channel capabilities, and customer service are expected to allow it to succeed alongside Amazon.

Overall, the firm’s rating and price target stems from the belief in The Trade Desk, Inc. (NASDAQ:TTD)’s ability to overcome current challenges as well as to continue to thrive in the competitive digital advertising landscape. Notably, the company outpaced nearly every segment of digital advertising in 2024, delivering $2.4 billion of revenue, exhibiting accelerated growth of 26% YoY as well as a record $12 billion of spending on its platform.

Rowan Street Capital, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

“The Trade Desk (TTD): Investment Initiated: March 2020

Internal Rate of Return (IRR): 54%

The Trade Desk has been our most successful investment to date. March 2025 will mark five years since we opportunistically initiated our position at a cost basis of $17.40 (split-adjusted). Since then, TTD has appreciated more than sevenfold, delivering an annualized return of approximately 54%.

These exceptional results far outpace the company’s strong fundamental growth, with revenues and earnings compounding at approximately 25% annually over this period (refer to the table below). The primary reason for this outsized return lies in the price at which we were able to acquire TTD during the early days of the pandemic, when market fears briefly drove it down to just 10x revenues. Today, the valuation has expanded significantly to approximately 25x revenues, amplifying our returns…” (Click here to read the full text)