Business

Trade Desk's share price plummets despite robust earnings amid rising competition

Sunday, 16 November 2025 5:03AM UTC

The Trade Desk's shares have fallen by 65% over the past year despite strong financial results, driven by concerns over market share erosion from competitors like Amazon and macroeconomic uncertainties affecting future growth prospects.

The Trade Desk, a key player in the digital advertising technology sector, presents an intriguing case where strong financial results sharply contrast with a steep decline in its stock price. Over the past year, shares of the company have fallen by approximately 65%, recently hitting a new 52-week low around $41.50. This decline is perplexing given the company’s robust earnings and revenue growth.

In its latest quarterly report, The Trade Desk posted revenue of $739 million, marking a 17.7% increase year-over-year, notably surpassing analyst expectations. Earnings per share also came in higher than forecast at $0.45, indicating solid operational performance. Despite these positive factors, investor confidence remains subdued. The stock is trading below both its 50-day and 200-day moving averages, underscoring ongoing bearish sentiment in the market.

The core concern for investors lies not in current figures but in the company’s future growth outlook amid intensifying competition. Amazon, in particular, has aggressively expanded its footprint in the programmatic advertising space through its Demand-Side Platform, capturing advertising budgets previously directed at firms like The Trade Desk. While The Trade Desk maintains nearly 18% growth, this lags behind the broader programmatic market’s faster expansion rate, raising fears of potential market share erosion.

Investor caution is reflected in downgraded analyst ratings and price targets, now hovering around a "Hold" consensus. Several financial institutions have trimmed their forecasts, and short interest in the stock has increased by about 16%, signalling ongoing speculation about further declines. The company’s management responded by authorizing an additional $500 million share repurchase program, signalling their belief that shares are undervalued, although insider selling activity has been notable, which investors watch closely.

Further compounding concerns are macroeconomic factors such as tariff uncertainties, which The Trade Desk’s CEO Jeff Green highlighted, warning of their impact on large brand advertisers, a key customer base for the firm. This vulnerability sets the company apart from competitors focused on small and medium-sized businesses, making it more sensitive to economic shifts and geopolitical risks. The resulting nervousness contributed to a recent near one-third drop in the stock after Green’s comments, prompting several analysts to lower their price targets further.

Amid these challenges, The Trade Desk’s financial health appears stable. The company reportedly holds more cash than debt and generated strong free cash flow, providing a solid cushion as it navigates turbulent conditions. Market observers note that despite near-term hurdles related to product rollouts, such as the slower-than-expected adoption of the AI-driven Kokai platform, and restructuring activities, the firm’s fundamentals remain intact. This has led some analysts to suggest the stock is undervalued at current prices, highlighting potential for upside should the company manage to regain growth momentum.

Nonetheless, investor sentiment remains cautious. Concerns over competitive pressure from tech giants, the company's ability to reaccelerate sales growth, and recent insider selling underpin a guarded outlook. While some market experts offer cautious optimism, forecasting a potential rebound with price targets substantially above current levels, the prevailing mood reflects uncertainty about how effectively The Trade Desk can maintain its position in a rapidly evolving and competitive digital advertising landscape.

📌 Reference Map:

^[1] (ad-hoc-news.de) - Paragraphs 1, 2, 3, 4, 5
^[2] (Investing.com) - Paragraph 1, 6, 7
^[3] (Investing.com) - Paragraph 1, 7
^[4] (Reuters) - Paragraph 4
^[5] (TipRanks) - Paragraph 4, 6
^[6] (Nasdaq) - Paragraph 3, 6
^[7] (Nasdaq) - Paragraph 6, 7

Source: Noah Wire Services

More on this

https://www.ad-hoc-news.de/boerse/news/ueberblick/the-trade-desk-s-puzzling-stock-decline-defies-strong-earnings/68362081 - Please view link - unable to able to access data
https://www.investing.com/news/company-news/the-trade-desk-stock-hits-52week-low-at-4177-usd-93CH-4359941 - The Trade Desk's stock has reached a new 52-week low, trading at $41.77, marking a significant downturn with a 65.94% decline over the past year. Despite this, the company remains profitable with a 20.82% revenue growth and holds more cash than debt. The drop reflects broader challenges in the tech sector, with market volatility and economic uncertainties weighing on investor sentiment. Analysts have revised earnings upwards, suggesting potential resilience, and the stock appears undervalued at current levels, with price targets ranging from $34 to $98.
https://www.investing.com/news/company-news/the-trade-desk-stock-hits-52week-low-at-429-usd-93CH-4343189 - The Trade Desk's stock reached a new 52-week low, touching $42.90, with a 1-year total return of -65.37%. The decline underscores challenges in navigating market conditions and investor sentiment. Despite the price drop, the company maintains strong revenue growth of 20.82% and is considered undervalued according to InvestingPro analysis. With additional ProTips and comprehensive metrics, InvestingPro offers deeper insights into The Trade Desk’s financial health, rated as GOOD overall.
https://www.reuters.com/business/trade-desk-tumbles-after-ceo-warns-tariff-impact-large-brand-advertisers-2025-08-08/ - Shares of Trade Desk (TTD.O) fell by nearly one-third after CEO Jeff Green warned about ongoing tariff uncertainty affecting major global advertisers. The plunge threatened to erase over $12 billion from the company's market valuation. Trade Desk, focusing on large brands, is more susceptible to macroeconomic pressures compared to competitors targeting small and medium-sized businesses. The company expects current quarter revenue of at least $717 million, aligning with analyst forecasts. Following the update, at least seven analysts reduced their price targets, bringing the median estimate down to $84.
https://www.tipranks.com/news/weekend-updates/trade-desk-stock-plummets-what-went-wrong - Analysts from BofA Securities, MoffettNathanson, Citi, and Wedbush have expressed concerns over Trade Desk’s growth potential, competitive pressures from giants like Amazon, and its high valuation, leading to downgrades and reduced price targets. The downgrades were driven by the company’s inability to meet growth expectations and challenges posed by its Kokai platform rollout. Despite the negative sentiment, some analysts see potential upside for Trade Desk, with an average price target suggesting a 75.77% increase from current levels. However, recent insider selling activity adds to the uncertainty surrounding the stock.
https://www.nasdaq.com/articles/trade-desk-stock-buy-after-its-60-decline-year-wall-street-has-clear-answer-investors - The Trade Desk (NASDAQ: TTD) has experienced a 60% decline year-to-date due to disappointing financial results and concerns about competition with Amazon. The company is the largest ad-buying platform for the open web, with a strong presence in connected TV advertising. Amazon is encroaching on markets traditionally dominated by The Trade Desk, and ad spending across the open web may decline sharply in the years ahead. Wall Street analysts have mixed opinions, with some suggesting potential upside if the company manages a material reacceleration in sales growth.
https://www.nasdaq.com/articles/whats-happening-trade-desk-stock - The Trade Desk (NASDAQ: TTD) stock has experienced a significant 40% dip in 2025, largely attributed to internal restructuring efforts that impacted near-term performance and the slower-than-anticipated adoption of its AI platform, Kokai. Despite this decline, the company maintains a strong financial position with over $1.7 billion in cash on its balance sheet and robust free cash flow generation. Analysts suggest that the current valuation appears attractive, and the company's operational strength and financial condition lead to minimal cause for long-term concern.

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 6

Notes: 🕰️ The narrative references recent events, including The Trade Desk's stock reaching a 52-week low of $41.50, which occurred on November 14, 2025. ([investing.com](https://www.investing.com/news/company-news/the-trade-desk-stock-hits-52week-low-at-4177-usd-93CH-4359941?utm_source=openai)) However, similar reports about the stock's decline have been published as early as November 7, 2025, indicating that the content may be recycled. ([investing.com](https://www.investing.com/news/company-news/the-trade-desk-stock-hits-52week-low-at-429-usd-93CH-4343189?utm_source=openai)) Additionally, the narrative includes information from a press release, which typically warrants a high freshness score.

Quotes check

Score: 7

Notes: 🕰️ The narrative includes direct quotes from CEO Jeff Green regarding tariff impacts on large brand advertisers. These quotes have been used in earlier reports, such as the one from August 8, 2025. ([reuters.com](https://www.reuters.com/business/trade-desk-tumbles-after-ceo-warns-tariff-impact-large-brand-advertisers-2025-08-08/?utm_source=openai)) The wording of the quotes appears consistent across sources, suggesting potential reuse.

Source reliability

Score: 8

Notes: ✅ The narrative is sourced from reputable outlets, including Reuters and Investing.com, which are known for their journalistic standards. However, the inclusion of a press release may introduce potential biases, as press releases are often self-promotional.

Plausability check

Score: 7

Notes: ⚠️ The narrative discusses The Trade Desk's stock decline despite strong earnings, a topic covered by multiple reputable sources. However, the inclusion of a press release may introduce potential biases, as press releases are often self-promotional. The narrative's tone and structure are consistent with typical financial reporting, and the claims align with known market events.

Overall assessment

Verdict (FAIL, OPEN, PASS): OPEN

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary: 🕰️ The narrative references recent events, including The Trade Desk's stock reaching a 52-week low of $41.50 on November 14, 2025. ([investing.com](https://www.investing.com/news/company-news/the-trade-desk-stock-hits-52week-low-at-4177-usd-93CH-4359941?utm_source=openai)) However, similar reports about the stock's decline have been published as early as November 7, 2025, indicating potential recycling of content. The inclusion of a press release may introduce potential biases, as press releases are often self-promotional. The quotes from CEO Jeff Green regarding tariff impacts on large brand advertisers have been used in earlier reports, such as the one from August 8, 2025. ([reuters.com](https://www.reuters.com/business/trade-desk-tumbles-after-ceo-warns-tariff-impact-large-brand-advertisers-2025-08-08/?utm_source=openai)) The narrative's tone and structure are consistent with typical financial reporting, and the claims align with known market events. Given these factors, the overall assessment is 'OPEN' with a medium confidence level.

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