Two Monster Stocks With Potential 150% and 630% Gains

"Wall Street analysts predict Tesla (TSLA) could rise 630% and The Trade Desk (TTD) 150%. How realistic are these targets, and should investors buy now?"

POINT

Tesla (TSLA) and The Trade Desk (TTD) have surged 555% and 163%, respectively, over the past five years.
Wall Street analysts project potential gains of 630% for Tesla and 150% for The Trade Desk.
Tesla is launching autonomous robotaxi services, while The Trade Desk maintains a competitive edge in digital advertising.

Tesla: A 630% Upside Potential

Image source: tesla

Current Price: $355.84
ARK Invest Target Price (2029): $2,600
Projected Upside: 630%

Tesla’s Current Situation

Tesla retained its position as the world's leading EV manufacturer in 2024. However, market share has slightly declined due to intensified competition in the U.S. and China. Price cuts intended to boost sales have also narrowed profit margins, reducing overall profitability.

In Q4 2024, Tesla reported $26 billion in revenue, a 2% year-over-year increase. While its energy division saw growth, automotive sales declined. Operating margin dropped by 2 percentage points, and EPS grew by 3% to $0.73. Additionally, Tesla recorded its first-ever annual decline in vehicle deliveries.

In response, Tesla is aggressively shifting focus to its autonomous ride-hailing business (robotaxi) as its next major growth driver.

Tesla’s Growth Strategy

Launching robotaxi services in Austin in June 2025, with plans to expand to major U.S. cities by the end of the year.
The company envisions disrupting the ride-hailing market by lowering operational costs compared to traditional ride-sharing services.

ARK Invest projects $1.2 trillion in revenue by 2029, with $750 billion from robotaxis. This would require an annual revenue growth rate of 65%.

However, considering the entire ride-sharing market was valued under $50 billion in 2024, such a 20-fold expansion in four years seems overly optimistic.

Key Risks

Regulatory hurdles and technical challenges in fully autonomous driving.
Increasing competition in the EV market, particularly from Chinese manufacturers.
Tesla’s high valuation (147x P/E ratio) could pose short-term risks.
The robotaxi business may not scale as quickly as projected.

>Investment Strategy

Tesla remains an innovative company with substantial long-term potential, but its current valuation is high, and short-term volatility is expected.

Long-term investors: If confident in the robotaxi vision, Tesla could be a strong long-term buy.
Short-term investors: Given the high valuation, waiting for a pullback before buying may be a safer approach.

The Trade Desk: A 150% Upside Potential

Current Price: $80.16
Morgan Stanley Target Price (12-month forecast): $200
Projected Upside: 150%

The Trade Desk’s Current Situation

The Trade Desk is a leading digital advertising technology company that provides AI-driven programmatic advertising solutions.

It offers a data-driven, highly targeted ad-buying platform that delivers higher ROI for advertisers.
Unlike Google and Meta, The Trade Desk does not own ad inventory, eliminating conflicts of interest.
It has strong partnerships with major retailers, enabling access to high-quality consumer data.

However, in Q4 2024, The Trade Desk missed market expectations for the first time in 33 quarters.

Revenue increased 22% YoY to $741 million, but fell short of expectations.
EPS increased 44% to $0.59, showing strong profitability.
CEO Jeff Green attributed the revenue shortfall to "a series of minor execution missteps."

Growth Strategy

Enhancing AI-driven ad optimization to further improve targeting precision.
Building direct relationships with advertisers instead of relying solely on ad agencies.
Shifting to smaller, more frequent product updates to adapt more quickly to market trends.

Key Risks

Morgan Stanley’s $200 price target assumes an annual revenue growth rate of 29% through 2027, well above the industry average of 22%.
Ad tech is highly competitive, and The Trade Desk must continue to differentiate itself from Google and Meta.

>Investment Strategy

The Trade Desk currently trades at 44x forward earnings, a discount compared to its historical average of 57x.

Long-term investors: Given the strong growth outlook, The Trade Desk appears to be a buy at current levels.
Short-term investors: While earnings volatility may continue in the near term, the company’s fundamentals remain strong.

Conclusion: Should You Buy These Stocks?

Tesla and The Trade Desk are both positioned in high-growth industries, with significant long-term potential.

Tesla (TSLA): If the robotaxi business scales successfully, Tesla could achieve exponential growth. However, its valuation is high, making short-term risk management important.
The Trade Desk (TTD): With a leading position in AI-powered digital advertising, the company appears undervalued relative to its long-term potential.

Rather than focusing on short-term gains, investors should consider a 3-5 year investment horizon for both companies.

source : https://www.fool.com/

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