The Trade Desk's stock price is down over 91% from its Dec. 6, 2024, peak.
The company faces growing pressure from big tech companies like Alphabet, Amazon, and Meta Platforms.
Like many other high-growth tech stocks, The Trade Desk (NASDAQ: TTD) generated significant hype when it began trading on the public market in September 2016. Since then, the stock has been a roller-coaster ride, to say the least. Unfortunately, the ride has been downhill at full speed for a few years now.
In the past five years, The Trade Desk's stock has fallen 82%, meaning if you had invested $1,000 in the stock then, your investment would be worth $179 as of Sept. 30. Needless to say, that's not ideal.
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The Trade Desk's stock peaked on Dec. 6, 2024, and is now down more than 91% from that level. No single reason explains Trade Desk's struggles; it's a combination of factors. Most notably, they include declining revenue growth (with expectations that it will turn negative); competition from big tech companies such as Alphabet, Amazon, and Meta Platforms; and a recent 15% reduction in its global workforce.
The company faces an uphill battle, as many corporations cut back on ad budgets. However, all hope isn't lost if management can execute its turnaround plans. The Trade Desk still has a solid footprint in Connected TV that it can lean on to maintain an edge.
That said, I wouldn't touch the stock right now. I'd rather wait to see revenue reaccelerate and proof that its internal changes are driving real business results.
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Stefon Walters has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, and The Trade Desk. The Motley Fool has a disclosure policy.