The Trade Desk Inc. Shares Fall After Slowest Revenue Growth

The Trade Desk Inc. shares fell 4.7% on Monday following a second-quarter earnings report that showed revenue growth of 3%, the company's slowest rate since the start of the pandemic. The adtech firm provided third-quarter guidance that implies a further revenue decline, contributing to a total stock decline of approximately 90% from its late 2024 peak.

Analysts attribute the slump to competitive pressure from walled gardens including Amazon, Apple, and Alphabet, alongside a failure to capitalize on AI advertising. CEO Jeffrey Green has faced criticism for focusing on spinning financial results rather than overhauling the business model.

Financial institutions responded with downgrades and lowered price targets. HSBC downgraded the stock from hold to reduce with a $10 price target, citing weakening relationships with agency partners. Morgan Stanley lowered its price target from $26 to $13 while maintaining an equal weight rating.