The Trade Desk Stock Crashes 40% Despite 12% Revenue Growth
The Trade Desk's stock tumbled 40% year-to-date as Wall Street turned on the adtech company over valuation concerns and competitive threats from Amazon's expanding ad business, which now generates ₱3.39 trillion ($56 billion) in annual revenue.
Key Takeaway
Wall Street dumped The Trade Desk on valuation fears despite solid revenue, not growth problems.
The Trade Desk stock collapsed 40% year-to-date even as the company posted ₱41.68 billion ($689 million) in Q1 revenue with 12% year-over-year growth.
Wall Street turned on the adtech firm despite its double-digit growth. The stock peaked at ₱8,530 ($141) in late 2024 and has since plunged to around ₱1,815 ($30), a 75% collapse from its high. Bank of America analyst Jessica Ehrlich downgraded the stock to Underperform, citing valuation concerns despite the company maintaining double-digit growth.
The collapse accelerated after CEO Jeff Green warned that U.S. tariffs would have a material impact on Q3 2025 performance. Amazon's expanding ad business poses a direct threat to The Trade Desk's open-internet advertising model. The Amazon-Netflix partnership for exclusive Connected TV inventory locks The Trade Desk out of premium CTV inventory, even though the company reaches 90 million households.
The Trade Desk's CFO resigned on January 26, 2026, adding to investor concerns. Analysts remain divided on the stock's future. BMO set a price target of ₱5,929 ($98), signaling 83% upside from current levels. Moffett Nathanson countered with a price target below $45, warning of an additional 16% downside.
The Trade Desk joined the S&P 500 in 2025, a milestone that now looks badly timed. Between Q1 and Q2 2025 earnings, the stock surged 47% before the recent collapse erased those gains and more. The company's Connected TV reach hasn't been enough to offset Wall Street's worry about walled garden competitors taking market share, with Moffett Nathanson warning of an additional 16% downside.
This article was written based on reporting from BeInCrypto.
