Trade Desk stock has been stifled by concerns about the company’s ability to sustain growth amid competitive threats.
- The average analysts’ price target for Trade Desk stock is $62.81, according to Koyfin, implying roughly 50% upside from its Friday’s close.
- The bulk of the stock declines came after the two earnings reports released this year.
- Following the quarterly results, Benchmark upgraded Trade Desk stock to ‘Buy’ from ‘Hold,’ citing its view that the prior perceived industry growth hurdles were generally in the rearview.
Trade Desk, Inc. (TTD) stock has lost approximately 64% this year, despite the broader market and the tech sector posting solid gains. If sell-side estimates are any guide, the stock appears increasingly out of sync with its underlying fundamentals.
The average analysts’ price target for Trade Desk stock is $62.81, according to Koyfin, implying roughly 50% upside from its Friday close.
What Ails Trade Desk Stock
The Trade Desk, an adtech platform, suffered steep single-day losses twice this year — once after its fourth-quarter results announcement in mid-February and again following its second-quarter earnings release in early August.
The February pullback was due to the company’s subpar revenue performance for the fourth quarter. The downtrend that followed intensified with the Trump administration’s tariff announcement, which impacted the broader market, and stalled when the market bounced back from the tariff ravages. Meanwhile, the August sell-off was triggered by the slower revenue growth for the second quarter and its issuance of a soft third-quarter forecast. Traders also expressed worries over the Amazon rivalry and the departure of the company’s CFO.
Amazon’s ad unit announced deals to integrate its platform with Disney and Roku, which many saw as a threat to Trade Desk’s market position. Trade Desk is a cloud-based, demand-side platform (DSP) that empowers advertisers to create, manage, and optimize digital advertising campaigns across various formats and devices.
Is Recovery On The Cards?
The Trade Desk stock’s technical chart presents a mixed signal. The relative strength index (RSI), a momentum indicator, suggests that the stock is trading in an oversold zone, indicating a potential rebound. However, the 200-day simple moving average (SMA), which moved above its shorter-term 50-day counterpart in early March, remains above it — a sign of bearishness.
Source: Koyfin<
In a statement released along with the third-quarter earnings report, CFO Jeff Green said, “Our momentum continues to be fueled by new product innovations we’ve launched across our Kokai platform, which are helping the world’s leading brands unlock the full potential of data-driven advertising.”
He also highlighted the benefits of artificial intelligence (AI).
How Wall Street Is Positioned On TTD
Following the quarterly results, Benchmark upgraded Trade Desk stock to ‘Buy’ from ‘Hold,’ citing its view that the prior perceived industry growth hurdles were generally in the rearview, according to a summary of the note available on the Fly. Analysts from the firm believe that the company’s forward-chain innovations, including OpenPath, OpenAds, and Deal Desk, will be “critical differentiators driving significant AI efficiency gains,” countering concerns about commoditization.
That said, the stock received a raft of price target cuts from analysts following the release of its third-quarter results. While RBC Capital Markets blamed the action on a contraction of peer multiples, Evercore ISI attributed the action to its belief that a linear path to a premium growth rate isn’t guaranteed.
Retail Sentiment Cools
On Stocktwits, retail sentiment toward Trade Desk stock tempered to ‘neutral’ as of early Monday from ‘bullish’ a day before, and the message volume tapered to ‘low’ levels.
According to Koyfin Out of the 37 analysts covering the stock, 20 have either ‘Strong Buy’ or ‘Buy’ ratings, while 14 remain on the sidelines, with ‘Hold’ ratings, and the remaining three analysts rate it either a ‘Sell’ or ‘Strong Sell.’
For updates and corrections, email newsroom[at]stocktwits[dot]com.<