Why The Trade Desk Was Sliding Again Today
Key Points
Shares of The Trade Desk plunged last Friday after the company badly missed estimates in its second-quarter earnings report.
This morning, HSBC lowered its rating on the stock from hold to reduce.
Guidance called for revenue and profits to decline in the third quarter.
- 10 stocks we like better than The Trade Desk ›
Shares of The Trade Desk (NASDAQ: TTD) were falling again on Monday as Wall Street reactions to last week's dismal earnings report rolled in.
As of 9:55 a.m. ET, the stock was down 4.7% on the news.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: Getty Images.
The Trade Desk sinks again
In its second-quarter earnings report, The Trade Desk reported revenue growth that slowed to just 3%, its slowest growth rate in its history, except for the first quarter during the pandemic.
The company's guidance for the third quarter also implied a decline in revenue, showing the business is collapsing as walled gardens like Amazon, Apple, and Alphabet seem to be outcompeting it for ad dollars.
This morning, HSBC downgraded the stock from hold to reduce and gave it a $10 price target, implying the stock would fall another 30% over the next year due to weakening relationships with agency partners, competitive pressure, and struggles to capitalize on AI advertising.
Morgan Stanley also lowered its price target from $26 to $13 and maintained an equal weight rating on the stock.
Can The Trade Desk bounce back?
Trade Desk stock is now down roughly 90% from its peak at the end of 2024 as the company has reported a string of disappointing quarterly results, with revenue growth consistently slowing.
Despite the challenges, CEO Jeff Green seems more focused on spinning the results than on overhauling the business to better compete with the walled gardens.
With revenue and profit now on track to fall in the third quarter, it's hard to see a compelling case to buy the adtech stock right now.
Should you buy stock in The Trade Desk right now?
Before you buy stock in The Trade Desk, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and The Trade Desk wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $399,832!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,374,595!*
Now, it’s worth noting Stock Advisor’s total average return is 968% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of August 10, 2026.
HSBC Holdings is an advertising partner of Motley Fool Money. Jeremy Bowman has positions in Amazon and The Trade Desk. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, and The Trade Desk. The Motley Fool recommends HSBC Holdings. The Motley Fool has a disclosure policy.
Recommended Articles
