"The stock has been clobbered this year on account of growing competitive pressure and execution issues. Programmatic advertising specialist The Trade Desk is having a terrible 2025 so far. The year went from bad to worse for investors after the company released its second quarter results on Aug. 7. The Trade Desk stock was hammered as the company's guidance indicated a slowdown in its growth."
"The Trade Desk started 2025 on a negative note. The stock was clobbered after releasing its full-year 2024 results in February when sales execution issues led the company to miss its revenue target. The company's May quarterly report helped it win back investor confidence as Q1 revenue was up by 25% year over year and well ahead of consensus expectations."
The Trade Desk's stock has fallen about 55% year-to-date amid growing competitive pressure and execution issues. The company missed revenue targets after full-year 2024 results, triggering an initial selloff. Q1 showed 25% revenue growth and briefly restored investor confidence, but Q2 growth slowed to 19% with earnings of $0.39 per share. Management guided for further deceleration to 14% revenue growth and $717 million in revenue for the current quarter, and projected adjusted EBITDA of $277 million, up roughly 8% year over year. AI integration continues, but larger competitors are constraining growth prospects.
Read at The Motley Fool
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