"This compares to the S&P 500's nearly doubling during this period (including dividends). The company operates a valuable platform that enables brands to purchase digital ads across the "open internet," or advertising inventory outside of "walled gardens" such as Meta Platforms' Facebook and Instagram. In addition to ads across internet properties, this includes the fast-growing and lucrative connected TV, retail media, and podcast space."
"Yet, growth has cooled as competition from tech giants has intensified, and the growth stock still trades at a lofty valuation -- which may leave investors wondering what to do. Let's dive in and see. Growth has cooled The Trade Desk's third-quarter revenue rose 18% year over year to $739 million. That is solid in isolation, but it marked a clear slowdown from 27% revenue growth in the third quarter of 2024."
The Trade Desk's shares fell about 65% in 2025 and are nearly half their five-year value, while the S&P 500 roughly doubled including dividends. The company provides a platform for brands to buy digital ads across the open internet, including connected TV, retail media, and podcasts. Third-quarter revenue rose 18% year over year to $739 million, slower than 27% growth in Q3 2024 and slower than the 22% growth in the first half of 2025. Management said excluding political spending, Q3 revenue growth would have been about 22%. Competition from tech giants has intensified and the stock still trades at a lofty valuation despite solid profitability.
Read at The Motley Fool
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