"The Trade Desk will have to contend with increased competition and shifting industry patterns over the next half-decade. Investors may look back at 2025 as the year investors turned on The Trade Desk stock. Other than the pullback in 2022, The Trade Desk stock had generally moved higher since its 2016 IPO. However, the 70% sell-off over the last 12 months has been so severe that the stock price is back to levels first seen in 2020."
"If looking closely at the digital ad industry, one can understand why The Trade Desk's platform was so popular. It helped advertisers and ad agencies use analytic tools, including artificial intelligence (AI), to find the available ad slots where an ad can best reach its desired audience, and presumably, drive more business back to its customers. The Trade Desk also had the added advantage of being a neutral platform."
Over the past year The Trade Desk stock plunged about 70%, returning to 2020 price levels after generally rising since its 2016 IPO except for 2022. The platform used analytics and artificial intelligence to help advertisers and agencies identify optimal ad slots and served as a neutral alternative to platform-owned ad services. Recent headwinds include economic uncertainty, data-privacy regulations, and intensifying competition and technological change. Major platforms like Google and Amazon have limited The Trade Desk's access to their ecosystems and prevent ad buying on owned properties, while Amazon's sales data provides a competitive advantage.
Read at The Motley Fool
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