Why The Trade Desk Stock Is Plummeting Today

Source Motley_fool

Key Points

  • A senior executive is leaving The Trade Desk, effective immediately.

  • Investors dislike uncertainty, and this move came with a double dose.

  • 10 stocks we like better than The Trade Desk ›

Shares of The Trade Desk (NASDAQ: TTD) slumped on Monday, falling as much as 8.5%. As of 3:13 p.m. ET, the stock was still down 7.1%.

The abrupt departure of a high-ranking executive normally raises eyebrows anyway, but this move was doubly perplexing.

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Professionally-dressed executives having a meeting around a table in a glass-walled conference room.

Image source: Getty Images.

A revolving door

In a press release that dropped early Monday, The Trade Desk announced that chief financial officer (CFO) Alex Kayyal would depart his position effective immediately. The company didn't provide any reason for the departure. Kayyal joined The Trade Desk's Board of Directors early last year and assumed the role of CFO in August, so his short tenure ended rather abruptly.

When a C-suite executive departs, especially on such short notice, there are inevitable questions about what precipitated the move and the potential impact on ongoing operations.

In the meantime, The Trade Desk appointed Tahnil Davis as Interim CFO, while it "conducts a search for a permanent successor." Davis currently serves as the company's chief accounting officer and has been with the company for 11 years.

CEO Jeff Green sought to calm concerned investors and affirmed The Trade Desk's fourth-quarter financial guidance.

Volatility continues

The Trade Desk has been in the midst of a turnaround. Early last year, after meeting or exceeding its own guidance for 33 consecutive quarters, the company stumbled and has been trying to regain its footing ever since. The adtech industry is becoming increasingly competitive, and some investors fear The Trade Desk may be losing ground to well-heeled competitors, including Amazon.

Green said the miss was the result of "a series of small execution missteps," and is confident The Trade Desk will regain its mojo, but investors have adopted a "wait and see" attitude.

Since the start of 2025, The Trade Desk stock has fallen roughly 75% and the company has lost several key executives. Investors are left wondering if this is the end of an era or just a run of bad luck.

Only time will tell.

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Danny Vena, CPA has positions in Amazon and The Trade Desk. The Motley Fool has positions in and recommends Amazon and The Trade Desk. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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