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Trade Desk Plunges 28% After Earnings Miss Triggers Downgrade Avalanche; Ad-Tech Peers AppLovin and Magnite Hold Firm
Yahoo Finance • • business
Key Points:
- The Trade Desk stock plummeted 28% to $12.76 following a Q2 revenue miss of $715 million versus $751 million estimates and a weak Q3 revenue outlook of at least $650 million, significantly below the $805 million consensus.
- Management cited macroeconomic pressures on key advertising sectors, execution issues, and competition from lower-cost alternatives as factors contributing to weaker demand, pricing pressure, and potential market-share losses.
- In contrast, other ad-tech stocks like AppLovin and Magnite showed steady or modest movement, indicating that Trade Desk's stock decline is company-specific rather than a reflection of the entire ad-tech market.
- Analysts responded with widespread downgrades and steep price-target cuts, with BMO Capital, Citi, and Evercore ISI all lowering their ratings and targets sharply, signaling cautious investor sentiment and expectations of a prolonged recovery.
