The Trade Desk's recent earnings report has raised alarm among investors, leading to downgrades in stock ratings across the ad tech sector. Doubts about TTD's competition with major players like Amazon, combined with slower revenue growth, are causing stock prices to fall, including a 40% drop in TTD's share price post-Q2 earnings. The shift in online search towards AI platforms is seen as detrimental by investors, as it restricts traffic to open web publishers, diminishing the addressable market for ad sales. Despite this, there are beliefs that the open internet will endure amidst new challenges.
"Investors are worried that digital ad dollars are moving into walled gardens, of which Amazon is the one to beat right now. But, also, there's a very real concern that suddenly the open internet is not going to get the consumer traffic it used to, which lowers the total addressable market for every company that sells ads on the open internet."
"It feels like the problems that Jeff itemized in the fourth quarter call aren't being addressed quickly enough and that has raised concerns among investors about TTD's competitive position in the industry."
Collection
[
|
...
]