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The Trade Desk CEO Just Put $150 Million of His Own Money Into the Stock. Here's Why That's a Signal You Shouldn't Ignore.

newsfeedback@fool.com (Will Healy)
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⚡ Quantum Brief
CEO Jeff Green invested $150 million of his own money to buy 6.4 million shares of his company’s stock after its value plummeted 85% from its 2024 peak. The purchase signals strong confidence in recovery, as insider buys typically indicate belief in future growth, despite recent struggles with AI platform glitches and advertiser pushback. Green defended his move in an op-ed, arguing Wall Street undervalues the company’s potential, citing the open internet’s resurgence and the new OpenTTD platform for ad-tech innovation. Despite slower 2025 growth (18% revenue increase), the company remains profitable with a 78.6% gross margin and a P/E ratio of 25, below the S&P 500 average. Risk-tolerant investors may see opportunity, but the stock remains speculative, with challenges like competitive threats and platform adoption lingering.
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By Will Healy – Apr 19, 2026 at 12:05PM ESTKey PointsThe Trade Desk stock has fallen by nearly 85% from its high.Company mistakes and competitive threats have weighed on the stock.Investors may be ignoring the company's continued financial strength.The Trade Desk (TTD 1.36%) has suffered through a massive decline over the last 16 months. Since its peak in December 2024, the stock has fallen by almost 85%. It is under such conditions that CEO Jeff Green bought nearly 6.4 million shares of the media stock, a purchase of approximately $150 million. That is a notable purchase by nearly every measure, and investors should not ignore it for this key reason. Image source: The Motley Fool. Why Green's purchase of The Trade Desk is significant Green's purchase of The Trade Desk stock is notable because insiders only buy their stock when they believe it will rise. As the co-founder, chairman, and CEO of this company, Green has a huge stake in its success. He founded the company in 2009 to capitalize on the growing need for a digital ad platform where companies and ad agencies could initiate and manage digital ad campaigns. The stock delivered market-beating returns up until early 2025, when the company missed its own revenue estimate. Some customers balked at its AI-driven Kokai platform, which had glitches and stripped away features they had liked from its previous platform, Solimar. Even worse, large advertisers began to wall off their platforms, making it more difficult for The Trade Desk to manage ad campaigns involving such platforms. ExpandNASDAQ: TTDThe Trade DeskToday's Change(-1.36%) $-0.31Current Price$22.45Key Data PointsMarket Cap$11BDay's Range$22.30 - $23.4252wk Range$19.74 - $91.45Volume714KAvg Vol19MGross Margin78.63% However, Green went so far as to publish an op-ed in The Current explaining his decision. He feels Wall Street is wrong about his company, believing the open internet will make a comeback. He also touted the launch of OpenTTD, which enables companies in its ad-tech ecosystem to innovate and build their business by leveraging The Trade Desk's platform. Even without considering Green's stock purchase, one also has to wonder whether the sell-off has gone too far.

The Trade Desk's $2.9 billion in revenue for 2025 grew by 18%. That was slower than the 26% growth rate in the previous year, but it is growth, nonetheless. Also, net income of $443 million grew at a slightly slower 15% rate, but only because a spike in income tax expenses led to the smaller increase. Moreover, its P/E ratio has fallen to 25. That is also below the S&P 500 average of 30 and implies it is being valued like a dying business. Should investors buy? When looking at Green's purchase from an investor perspective, it could be an indication to buy the stock. Despite its recent challenges, it has delivered steady revenue and income growth, and the aforementioned 25 P/E ratio could arguably mean it has become a bargain. Despite Green's explanation of the purchase, the investment is a speculative buy, and even an insider could be misguided. Thus, for risk-averse investors, staying on the sidelines could be the best course of action. However, The Trade Desk has shown signs that investors could benefit from a massive turnaround, and its valuation has become reasonable. Those are arguably excellent reasons for risk-tolerant investors to open a starting position in The Trade Desk stock to add to as the turnaround narrative hopefully pans out.Read NextApr 18, 2026 •By Daniel SparksThe Trade Desk Is Down 40% This Year. Here's Why I'm Not Buying (Yet).Apr 15, 2026 •By Scott LevineBest Advertising Technology Stocks for 2026 and How to InvestApr 14, 2026 •By Scott LevineBest Cloud Computing Stocks for 2026 and How to InvestApr 12, 2026 •By Parkev Tatevosian, CFAWhy Is The Trade Desk Stock Crashing, and is it a Buying Opportunity?Apr 9, 2026 •By Lawrence NgaIs It Time to Give Up on The Trade Desk Stock?Apr 7, 2026 •By Lawrence NgaWhy The Trade Desk CEO Is Putting $150 Million Into His Own StockAbout the AuthorWill Healy is a contributing Motley Fool stock market analyst covering technology and consumer goods industries.

Before The Motley Fool, Will was a freelance writer covering stocks and personal finance for MSN Money, Yahoo! Finance, and Nasdaq. Earlier in his career, he was an expert in geographic information systems, applying spatial and IT skills to perform RF and demographic analysis in the telecom industry. He holds a bachelor’s degree in journalism from Texas A&M University and an MBA in finance and strategy from the University of Texas at Dallas.TMFWillHealyX@HealyWritingStocks MentionedThe Trade DeskNASDAQ: TTD$22.45(-1.36%)-$0.31*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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