Have you seen the hit movie The Big Short ?It tells the true story of a few clever investing pros who made a killing during the financial crisis.They figured out early on that the US housing market was a house of cards and placed bets to profit from its collapse.When it all came crashing down in 2007–2008, they walked away with more than a billion dollars profit.The guys who pulled it off are revered as living legends, financial heroes, investing gods.Why? Because anyone can turn a profit in a bull market . But these guys made a fortune while almost everyone else was losing money.In this article, I’ll show you how to make money this year no matter where markets go.I’ll explain the two key things I look for in stocks that allowed me to generate a 120% profit during stormy markets.If you’re worried about where the market is headed this year, this article is for you.
2018 Was a Difficult Year for Many Stocks, Except This One
From late September to Christmas Eve, the S&P 500 plunged 19.8%. The Nasdaq suffered its worst December ever. The S&P had its worst December since 1931.Here’s how the roller coaster of the last year looks on a chart:
Meanwhile, a little company called
The Trade Desk (
TTD[NSD] -
$194.35 5.55 (2.94%) was quietly chugging along.
The Trade Desk is one of the first “disruptor” stocks I alerted readers to last year.In short,
disruptors are companies that create, transform, and disrupt whole industries. They often hand early investors gains of 3X, 4X, 5X, or better.And The Trade Desk is a little company that’s disrupting the giant online advertising industry.Now back to TTD…The online ad industry, as you may know, is extremely lucrative. It’s a fast-growing $80 billion pot of gold with very high margins.But powerful companies Google
GOOGL[NGS] -
$1,149.97 0.88 (0.08%)and Facebook
FB[NGS] -
$169.60 0.47 (0.28%) hog most of the profits.Facebook gets 98% of its revenue from selling online ads. Google gets 87% of its revenue from selling online ads.This allowed them to grow into the fourth- and seventh-largest publicly traded companies on Earth.Hold that thought and recall the ugly S&P 500 chart I just showed you…Now look at how TTD performed during the same period:
Notice two important things:One, TTD has gained 120% over the past eight months when I first alerted readers about it. Keep in mind, this was while the average investor was losing money in the market.Two, see those circled parts where the stock jumped? They mark the times when TTD announced quarterly financial results to the market.From left to right, earnings grew 84%, 3%, 98%, and 143%. The latest one, on Feb 21, gave TTD stock a 31% gain in one day.Now, The Trade Desk is a
true disruptor for a few reasons…
Reason #1: TTD’s Earnings Grow No Matter What
The Trade Desk has kept its profit engine going no matter what happened in the market.In fact, TTD has grown earnings at an average clip of 88% in the past eight quarters.This is incredible growth.The average S&P 500 company has grown earnings at a rate less than 8% over this period. Even mighty Amazon
AMZN[NGS] -
$1,620.80 5.15 (0.32%) could only muster average earnings growth of 58% in that time.Thanks to its unstoppable growth, TTD stock powered right through last year’s rough markets.Much like disruptors did during 2008.As I’m sure you know, the 2008 financial crisis tore most of America’s companies to shreds. The average S&P 500 company’s earnings collapsed by a disastrous 77%.But disruptors held strong. From 2007–2009 online travel disruptor Priceline’s
BKNG[NGS] -
$1,715.82 9.19 (0.53%) earnings surged 249%. Amazon’s shot up 89%.This drove their stocks to gains of 393% and 241% from 2007–2009—one of the most difficult stretches in US stock market history.But there’s also another reason TTD has done so well.Related:
Warren Buffett Bought Only One REIT and It’s ExplodingRelated:
The 10 Questions to Ask Before Buying a Stock Reason #2: TTD Is a Small Company Disrupting a HUGE Market
Last year, its sales totaled $477 million.Yet it is taking on the $725 billion global advertising industry.TTD’s sales could soar 1,500% and it would still own less than 1% of its target market.Which means its stock could double quickly—as it has in the past eight months—and still have plenty of room to triple or quadruple again.Earlier I mentioned that Google and Facebook dominate online advertising. But their grip is slipping as TTD pries customers away.Last year, four of the world’s ten largest advertisers boosted their spending with The Trade Desk by over 100%.Meanwhile, big advertising spenders like Procter & Gamble
PG[NYE] -
$98.41 0.14 (0.14%) are pulling hundreds of millions of dollars from Google and Facebook.At $8 billion, TTD is still tiny compared to the monstrous companies it’s disrupting.Facebook is more than 50X its size. Google is almost 100X its size!Which means, TTD can keep growing, and growing, and growing—through up and down markets—for years.
Have you Missed Out on Amazon, Google, and Netflix-level profits of 500%+? Here’s Your Second Chance
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