The Trade Desk Faces Its Most Important Revenue Test After a 67% Collapse
24/7 Wall St. • • business
Key Points:
- Trade Desk's upcoming earnings report is highly anticipated, with the primary focus on its revenue growth rate to determine if the recent 67% stock decline reflects a genuine business slowdown or an overreaction.
- Despite a steep stock drop, Q3 2025 revenue grew 18% year-over-year to $739 million, beating estimates, with strong customer retention and widespread adoption of its AI-powered Kokai platform, indicating solid business fundamentals.
- The company has guided for at least $840 million in Q4 revenue, implying 17-18% growth; maintaining or exceeding this growth rate is crucial to restoring investor confidence and countering concerns about structural deceleration.
- Institutional investors have increased their stakes significantly, signaling confidence, while the
