"2025 was a rough year for investors in The Trade Desk . The technology platform for advertisers looking to escape the walled gardens fell 67.7%, according to data from S&P Global Market Intelligence. Slowing revenue growth amid a changing landscape in digital advertising on television, along with the adoption of artificial intelligence ( AI), has led investors to bail on the stock."
"For the first nine months of 2025 (Q4 numbers are not yet available), The Trade Desk generated 20% revenue growth, which appears to be a solid figure in isolation. However, this was a slowdown in growth from 2024, when the company posted 27% revenue growth over the same period. Revenue growth deceleration is typically going to cause a stock to fall, which happened to The Trade Desk throughout 2025."
"First, there is the rise of Amazon as a direct competitor in TV advertising. Amazon now has its own demand-side platform (DSP) to serve advertisers, which is the entire Trade Desk business model. It recently signed on with Netflix for inventory, giving advertisers a wide breadth of inventory when using the Amazon Ads business. Another potential threat is AI. The Trade Desk is competing with the likes of Google and Instagram to win advertising spend."
The Trade Desk experienced a severe stock decline in 2025 after falling 67.7% amid slowing revenue growth and a shifting digital-TV advertising landscape. Revenue growth decelerated from 27% in 2024 to 20% in the first nine months of 2025. Investors cite rising competition in streaming TV, notably Amazon launching a demand-side platform and securing Netflix inventory, as a direct threat. Artificial intelligence improvements from Google, Instagram and others pose a targeting advantage that could reduce advertiser incentives to use The Trade Desk. The company now has an $18 billion market capitalization and generated net income of $439 million.
Read at The Motley Fool
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