The Best Stock to Invest $500 in Right Now
Key Points
The Trade Desk could get a growth boost with its OpenAI integration.
The adtech company's CEO just loaded up on shares -- a positive sign.
- 10 stocks we like better than The Trade Desk ›
If you've got $500 sitting around collecting dust, there are few better options to invest in than The Trade Desk (NASDAQ: TTD). At first glance, you may be wondering why I think a stock down around 80% from its all-time high constitutes a good investment, but once you understand why it's down so big, you may agree.
I think The Trade Desk is a screaming value right now, and investors should be confident in injecting new capital into this long-term winner.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
The Trade Desk hit a bump in the road
Despite sliding some 80% from its all-time high, the stock is still up nearly 900% over the past decade thanks to all of the company's success. The Trade Desk has built one of the best buy-side ad technology platforms. This software helps users place their ads in the most optimal space in places like website margins, podcasts, connected TV, and pretty much anywhere else you think a digital ad could appear (outside of walled garden sites like Google, Facebook, or Instagram).
This isn't a business that's expected to be disrupted by the implementation of generative artificial intelligence (AI), but it has sold off heavily alongside its software peers regardless of that fact. However, it could soon benefit from a new partner: OpenAI.
Reportedly, OpenAI was in talks with The Trade Desk regarding how to implement ads on its platform. This partnership would give The Trade Desk's clients access to a new form of advertising that could generate massive revenue. Imagine you asked ChatGPT what the best product is to buy, and it gave some recommendations, including a sponsored one (that it informed you was sponsored), and you can go directly to the website to buy it. That would be a lucrative advertising space, and with The Trade Desk being a partner in its creation, it could result in massive growth for the company, something it desperately needs.
During the fourth quarter, The Trade Desk's revenue growth was nothing spectacular, rising 14% year over year. However, investors were more worried about next quarter's growth, as they only expect revenue to rise 10%. That's a huge issue, marks a transition from becoming a growth stock. However, the value investment community hasn't picked up on The Trade Desk's stock quite yet, which is why the stock trades for such a cheap valuation.
TTD PE Ratio (Forward) data by YCharts
At 14 times forward earnings, The Trade Desk is a screaming bargain and is slated to rally once its growth returns. If the OpenAI partnership pans out, I won't be surprised to see the stock skyrocket over the next few months. As another vote of confidence, The Trade Desk's CEO just purchased nearly $150 million of stock with his own money. That shows he's confident about the turnaround, and investors should be, too.
Should you buy stock in The Trade Desk right now?
Before you buy stock in The Trade Desk, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and The Trade Desk wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $508,607!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,122,746!*
Now, it’s worth noting Stock Advisor’s total average return is 933% — a market-crushing outperformance compared to 188% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of March 13, 2026.
Keithen Drury has positions in The Trade Desk. The Motley Fool has positions in and recommends The Trade Desk. The Motley Fool has a disclosure policy.
Recommended Articles
