"First, management's tone wasn't amiable on the call, and in follow-up interviews, as CEO Jeff Green flagged tariff-related uncertainty that could pressure large global brands, precisely the kind of advertisers that dominate TTD's mix. That spooked investors about second-half visibility. Moreover, guidance for Q3 revenue of "at least" $717 million implied growth decelerating from Q2's 19% to the mid-teens, which is hardly a collapse but enough to challenge a once-lofty multiple."
"Second, the company announced a CFO transition on the same day, which, despite appointing a capable insider (board member Alex Kayyal), created "change-stacking" optics that the market dislikes. Several banks cut ratings or targets, including Bank of America, which downgraded TTD to Underperform and slashed its target to $49, while Morgan Stanley and BTIG moved to the sidelines. These quick changes in heart amplified a narrative that TTD had been priced for perfection."
Trade Desk's stock trades around $53, roughly 63% below its 52-week high of $141.53, despite continued impressive growth. The selloff intensified after Q2 earnings as investors focused on softer near-term trends and macroeconomic headwinds, although underlying growth remained robust. Management's cautious tone and CEO comments about tariff-related uncertainty raised concerns about second-half visibility. Q3 revenue guidance of "at least" $717 million implied growth deceleration from Q2's 19% to the mid-teens. A same-day CFO transition, despite an insider appointment, created unfavourable change-stacking optics. Several banks cut ratings or targets, amplifying a narrative that the stock had been priced for perfection. Regulatory overhang also adds uncertainty.
Read at TipRanks Financial
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