2 High-Growth Stocks That Could Soar

With growth stocks getting slammed left and right over the last few weeks, one has to ask: Have some been oversold? Programmatic ad-buying platform The Trade Desk (NASDAQ:TTD) and electric-car maker Tesla (NASDAQ:TSLA) are two stocks that are looking particularly compelling after their recent sell-offs.

There’s no guarantee either stock will soar in the coming years. But The Trade Desk and Tesla both appear to have underlying business momentum that could potentially support significant share price appreciation. Of course, in order for this to happen, both companies will need their current tailwinds to persist and their management teams to execute shrewdly.

Here’s a look at both companies…

The Trade Desk

Shares of The Trade Desk have been hammered recently. The stock is down 27% in the last two months. But its underlying business continues to see strong growth. In the company’s second quarter, revenue rose 42% year over year as major global advertisers continued to shift more advertising dollars to programmatic.

Key growth drivers for the company’s business include increased ad spend in mobile video, mobile in-app, connected TV (CTV), and audio channels. All of these channels saw ad spend rise 50% year over year or more in Q2, with CTV and audio ad spend rising 150% and 270%, respectively.

Highlighting its momentum, The Trade Desk lifted its full-year view for revenue and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) when it reported its second-quarter results. Management now expects 2019 revenue to be “at least” $653 million, up from a previous forecast for $645 million or more. It expects adjusted EBITDA of $201 million (about 30.8% of revenue), up from $188.5 million (about 29% of revenue).

Tesla

Unlike The Trade Desk, Tesla isn’t consistently profitable, but its gross profit is growing quickly and its losses are narrowing as revenue soars. In addition, the automaker’s uncanny growth in vehicle sales suggests the company is…

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