1 Top Tech Stock to Buy on the Dip
The stock market has not been kind to advertising technology companies so far this year. Shares of advertising-dependent companies like Meta Platforms have plummeted, and even The Trade Desk (NASDAQ: TTD) -- a leading adtech platform -- is down by almost 50% this year.
Snap's (NYSE: SNAP) disappointing second-quarter earnings report added fuel to this fire. The company's growth was far below expectations, leading some investors to be concerned about the rest of the advertising industry. However, these worries might be overblown, particularly in the case of The Trade Desk. In fact, right now looks like a prime opportunity to buy its shares.
Adtech stocks have slumped as fear has grown that the U.S. is heading toward a recession. If a recession hits, businesses will cut back on spending, and one of the most easily trimmed expenses is advertising. Considering that The Trade Desk facilitates ad transactions and helps companies purchase advertising space, declining demand for ads would hurt its business.
Source Fool.com
