The Trade Desk Shares Plunge 10.7% Amid Analyst Downgrade
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Source: Fool
- Significant Stock Decline: Shares of The Trade Desk plummeted by as much as 10.7% on Tuesday, with a current decline of 9.6% as of 3:13 p.m. ET, indicating growing market concerns regarding the company's future prospects.
- Analyst Price Target Cut: KeyBanc analyst Justin Patterson reduced the price target for The Trade Desk from $88 to $40 while maintaining an overweight rating, highlighting the challenges faced by smaller adtech firms as larger competitors increasingly leverage artificial intelligence.
- Executive Turnover Impact: The termination of CFO Alex Kayyal after just five months marks the second CFO departure in under a year, raising further investor concerns about the stability of the company's leadership.
- Slowing Growth Trend: The Trade Desk's stock has fallen over 78% in the past year, with growth slowing each quarter, leading investors to question the company's future growth potential, as CEO Jeff Green acknowledged execution missteps that may hinder recovery.
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Analyst Views on TTD
Wall Street analysts forecast TTD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TTD is 59.68 USD with a low forecast of 39.00 USD and a high forecast of 90.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
25 Analyst Rating
15 Buy
9 Hold
1 Sell
Moderate Buy
Current: 26.240
Low
39.00
Averages
59.68
High
90.00
Current: 26.240
Low
39.00
Averages
59.68
High
90.00
About TTD
The Trade Desk, Inc. is a global advertising technology company. The Company offers a self-service, cloud-based ad-buying platform that empowers its clients to plan, manage, optimize and measure more expressive data-driven digital advertising campaigns. Its platform allows clients to execute integrated campaigns across ad formats and channels, including connected television (CTV) and other video, display, audio, and native, on a multitude of devices, such as televisions, streaming devices, mobile devices, computers and digital-out-of-home devices. Its platform’s integrations with inventory, publisher and data partners provide ad buyers reach and decisioning capabilities, and its enterprise application programming interfaces (APIs) enable its clients to customize and expand platform functionality. Its platform provides auto-optimization features that allow buyers to automate their campaigns and support them with computer-generated modeling and decision-making.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
The Trade Desk Stock Hits Historical Low After Sell-Off
- Significant Price Decline: The Trade Desk's stock has plummeted nearly 80% from its all-time highs, despite a remarkable 900% increase over the past decade, indicating a market pessimism regarding its future growth potential with a current market cap of $13 billion.
- Slowing Revenue Growth: The company's revenue growth rate of 18% in Q3, while above Wall Street's 16% expectation, marks the lowest level in recent years, reflecting intensified competition and a trend of clients moving ad placements in-house.
- Increased Competitive Pressure: The Trade Desk faces competition from companies like Amazon, as clients shift to in-house advertising, resulting in a loss of market share and impacting the company's growth trajectory.
- Emerging Investment Opportunity: Despite the significant stock price drop, The Trade Desk trades at a forward P/E ratio below 15, with expectations of continued growth in the coming years, making it a compelling rebound investment opportunity worth considering.
See More
The Trade Desk Stock Plummets, Revealing Investment Opportunity
- Stock Price Decline: The Trade Desk's stock has plummeted nearly 80% from its all-time highs, despite a remarkable 900% growth over the past decade, and currently trades at less than 15 times forward earnings, presenting a potential turnaround investment opportunity.
- Slowing Revenue Growth: The company's revenue growth rate fell to 18% in Q3, the lowest since a COVID-19-affected quarter, yet it remains above Wall Street's expectation of 16%, indicating that the company still possesses growth potential amid rising competition.
- Increased Competition: Some clients have shifted ad placements in-house, while competitors like Amazon are capturing market share, leading to a decline in The Trade Desk's perceived market ceiling and triggering significant stock volatility.
- Long-Term Outlook: Although the stock may not rebound quickly in the short term, The Trade Desk is well-positioned to capitalize on shifts in the advertising market over the next decade, making it a noteworthy investment, especially given its current depressed price.
See More
Trade Desk Inc Named One of the Best Revenue Growth Stocks
- Shareholder Changes: On February 2, Cathie Wood's ARK ETF divested 1,931,578 shares of Trade Desk Inc (TTD) for nearly $58.6 million, indicating concerns about the company's future prospects.
- Rating Adjustments: Wells Fargo maintained an Equal Weight rating on TTD with a price target of $42, noting that the sudden resignation of the CFO could lead to continued fundamental and narrative volatility, impacting the company's competitiveness.
- Price Target Reductions: Several research firms have cut their price targets for Trade Desk, with Rosenblatt lowering from $64 to $53, Truist from $65 to $60, Citi from $50 to $38, Stifel from $90 to $75, and BofA from $49 to $40, reflecting cautious market sentiment regarding its future performance.
- Market Competition: As an independent demand-side platform, Trade Desk faces pressure from competitors like Amazon, and management turnover may hinder its competitiveness in the programmatic digital advertising market, necessitating the search for a candidate with public-company CFO experience to enhance management stability.
See More
The Trade Desk CFO Departure Raises Market Concerns
- Executive Turnover: The Trade Desk's CFO Alex Kayyal resigned on January 24 after just five months, raising concerns about the company's executive culture amid increasing competitive pressures, particularly from Amazon.
- Slowing Revenue Growth: Although The Trade Desk reported an 18% year-over-year revenue increase, this growth rate is significantly lower than that of competitor Amazon, which poses a risk of market share loss for The Trade Desk in the streaming advertising sector.
- Stock Price Decline: Shares of The Trade Desk fell 20% last month and are down 81% from all-time highs, yet the stock still trades at a premium P/E ratio of 30, indicating investor caution regarding its future growth prospects.
- Investment Recommendations: Given the frequent executive changes and intensifying competition, analysts have not included The Trade Desk in their recommended investment list, reflecting a lack of confidence in the company's future performance.
See More
The Trade Desk Shares Plunge 20% Amid Challenges
- CFO Departure Impact: The Trade Desk's CFO resigned on January 24 after only five months, raising investor concerns about executive culture, particularly as the company faces slowing advertising revenue growth.
- Revenue Growth Slowdown: While The Trade Desk reported an 18% year-over-year revenue increase, this growth rate is significantly lower than that of competitor Amazon, which is expanding aggressively in the streaming advertising market, potentially eroding The Trade Desk's market share and increasing investor anxiety.
- Significant Stock Decline: As of February 5, 2026, The Trade Desk's shares have plummeted 81% from all-time highs, with a current market cap of $13 billion and a price-to-earnings ratio of 30, indicating persistent valuation pressure despite the steep decline in stock price.
- Increased Investment Risk: The rapid turnover of multiple CFOs and intensified competition from Amazon render The Trade Desk's stock a high-risk investment; even after an 80% drop in share price, careful consideration is needed before deciding to buy.
See More
Analysts Favor These 3 Stocks Approaching 52-Week Lows—Here’s the Reason
Earnings Season Insights: Analysts and investors are seeking value as earnings season begins, with 30% of respondents in a Bank of America survey anticipating a decline in AI stock valuations, leading to a potential correction in the credit market.
Investment Strategies: Retail investors are encouraged to identify stocks trading near their 52-week lows, with tools available to help screen for these opportunities, as bullish sentiment suggests potential gains before upcoming earnings reports.
Market Performance of Specific Stocks: The Trade Desk (TTD) has seen a significant decline in stock value, attributed to competition from Amazon, while analysts suggest that despite challenges, there may be a rebound opportunity based on current trading levels.
Chewy and Other Stocks: Chewy (CHWY) is highlighted as a stock trading at multi-year lows, with analysts forecasting substantial earnings growth in the next year, despite concerns over its current valuation, indicating potential for future investment.
See More
The Trade Desk Stock Hits Historical Low After Sell-Off
- Significant Price Decline: The Trade Desk's stock has plummeted nearly 80% from its all-time highs, despite a remarkable 900% increase over the past decade, indicating a market pessimism regarding its future growth potential with a current market cap of $13 billion.
- Slowing Revenue Growth: The company's revenue growth rate of 18% in Q3, while above Wall Street's 16% expectation, marks the lowest level in recent years, reflecting intensified competition and a trend of clients moving ad placements in-house.
- Increased Competitive Pressure: The Trade Desk faces competition from companies like Amazon, as clients shift to in-house advertising, resulting in a loss of market share and impacting the company's growth trajectory.
- Emerging Investment Opportunity: Despite the significant stock price drop, The Trade Desk trades at a forward P/E ratio below 15, with expectations of continued growth in the coming years, making it a compelling rebound investment opportunity worth considering.
See More
The Trade Desk Stock Plummets, Revealing Investment Opportunity
- Stock Price Decline: The Trade Desk's stock has plummeted nearly 80% from its all-time highs, despite a remarkable 900% growth over the past decade, and currently trades at less than 15 times forward earnings, presenting a potential turnaround investment opportunity.
- Slowing Revenue Growth: The company's revenue growth rate fell to 18% in Q3, the lowest since a COVID-19-affected quarter, yet it remains above Wall Street's expectation of 16%, indicating that the company still possesses growth potential amid rising competition.
- Increased Competition: Some clients have shifted ad placements in-house, while competitors like Amazon are capturing market share, leading to a decline in The Trade Desk's perceived market ceiling and triggering significant stock volatility.
- Long-Term Outlook: Although the stock may not rebound quickly in the short term, The Trade Desk is well-positioned to capitalize on shifts in the advertising market over the next decade, making it a noteworthy investment, especially given its current depressed price.
See More
Trade Desk Inc Named One of the Best Revenue Growth Stocks
- Shareholder Changes: On February 2, Cathie Wood's ARK ETF divested 1,931,578 shares of Trade Desk Inc (TTD) for nearly $58.6 million, indicating concerns about the company's future prospects.
- Rating Adjustments: Wells Fargo maintained an Equal Weight rating on TTD with a price target of $42, noting that the sudden resignation of the CFO could lead to continued fundamental and narrative volatility, impacting the company's competitiveness.
- Price Target Reductions: Several research firms have cut their price targets for Trade Desk, with Rosenblatt lowering from $64 to $53, Truist from $65 to $60, Citi from $50 to $38, Stifel from $90 to $75, and BofA from $49 to $40, reflecting cautious market sentiment regarding its future performance.
- Market Competition: As an independent demand-side platform, Trade Desk faces pressure from competitors like Amazon, and management turnover may hinder its competitiveness in the programmatic digital advertising market, necessitating the search for a candidate with public-company CFO experience to enhance management stability.
See More
The Trade Desk CFO Departure Raises Market Concerns
- Executive Turnover: The Trade Desk's CFO Alex Kayyal resigned on January 24 after just five months, raising concerns about the company's executive culture amid increasing competitive pressures, particularly from Amazon.
- Slowing Revenue Growth: Although The Trade Desk reported an 18% year-over-year revenue increase, this growth rate is significantly lower than that of competitor Amazon, which poses a risk of market share loss for The Trade Desk in the streaming advertising sector.
- Stock Price Decline: Shares of The Trade Desk fell 20% last month and are down 81% from all-time highs, yet the stock still trades at a premium P/E ratio of 30, indicating investor caution regarding its future growth prospects.
- Investment Recommendations: Given the frequent executive changes and intensifying competition, analysts have not included The Trade Desk in their recommended investment list, reflecting a lack of confidence in the company's future performance.
See More
The Trade Desk Shares Plunge 20% Amid Challenges
- CFO Departure Impact: The Trade Desk's CFO resigned on January 24 after only five months, raising investor concerns about executive culture, particularly as the company faces slowing advertising revenue growth.
- Revenue Growth Slowdown: While The Trade Desk reported an 18% year-over-year revenue increase, this growth rate is significantly lower than that of competitor Amazon, which is expanding aggressively in the streaming advertising market, potentially eroding The Trade Desk's market share and increasing investor anxiety.
- Significant Stock Decline: As of February 5, 2026, The Trade Desk's shares have plummeted 81% from all-time highs, with a current market cap of $13 billion and a price-to-earnings ratio of 30, indicating persistent valuation pressure despite the steep decline in stock price.
- Increased Investment Risk: The rapid turnover of multiple CFOs and intensified competition from Amazon render The Trade Desk's stock a high-risk investment; even after an 80% drop in share price, careful consideration is needed before deciding to buy.
See More
Analysts Favor These 3 Stocks Approaching 52-Week Lows—Here’s the Reason
Earnings Season Insights: Analysts and investors are seeking value as earnings season begins, with 30% of respondents in a Bank of America survey anticipating a decline in AI stock valuations, leading to a potential correction in the credit market.
Investment Strategies: Retail investors are encouraged to identify stocks trading near their 52-week lows, with tools available to help screen for these opportunities, as bullish sentiment suggests potential gains before upcoming earnings reports.
Market Performance of Specific Stocks: The Trade Desk (TTD) has seen a significant decline in stock value, attributed to competition from Amazon, while analysts suggest that despite challenges, there may be a rebound opportunity based on current trading levels.
Chewy and Other Stocks: Chewy (CHWY) is highlighted as a stock trading at multi-year lows, with analysts forecasting substantial earnings growth in the next year, despite concerns over its current valuation, indicating potential for future investment.
See More
