The Trade Desk Stock Plunges on Soft Revenue, Weak Outlook
The Trade Desk stock is plunging Thursday after the advertising platform missed fourth-quarter revenue expectations and issued weak first-quarter guidance.


The Trade Desk (TTD) stock is tanking Thursday after the advertising platform beat on earnings but came up short of revenue expectations for its fourth quarter and issued a weaker-than-expected top-line forecast for its first quarter.
In the three months ending December 31, The Trade Desk's revenue increased 22.3% year over year to $741 million. Earnings per share (EPS) rose 43.9% from the year-ago period to 59 cents.
"The Trade Desk once again outpaced nearly every segment of digital advertising in 2024," said CEO Jeff Green in a statement, citing annual revenue growth of 26% to $2.4 billion as well as "a record $12 billion of spend on our platform." Green also said The Trade Desk "achieved significant profitability and cash flow."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The CEO did say The Trade Desk is "disappointed that we fell short of our own expectations in the fourth quarter."
Results were mixed compared with analysts' expectations. Wall Street was anticipating revenue of $758.9 million and earnings of 57 cents per share, according to Barron's.
The Trade Desk forecast revenue of at least $575 million for its first quarter, which also fell short of analysts' expectations of $582.1 million.
The Trade Desk also announced that its board of directors approved an additional $564 million in share repurchases under its current program, bringing the total authorized amount to $1 billion.
Stock buybacks are another way for corporations to boost value for shareholders.
Is The Trade Desk stock a buy, sell or hold?
The Trade Desk has had strong run over the trailing 12 months, nearly tripling the S&P 500's gain with a total return of 65.4% vs 22.2% for the index. And Wall Street is still bullish on the tech stock.
According to S&P Global Market Intelligence, the average analyst target price for TTD stock is $123.09, representing implied upside of more than 46% to current levels. And the consensus recommendation is a Buy.
Analysts will reassess and may revise their ratings and price targets following the disappointing quarter. Indeed, financial services firm Wedbush has already updated its view on the communications services stock.
Analyst Scott Devitt reiterated his Outperform rating (equivalent to a Buy) but lowered his price target to $120 from $145 yesterday.
"The Trade Desk reported disappointing results and guided 1Q below expectations," Devitt wrote in a note on Wednesday, acknowledging the reaction in the after-hours trading market.
"We do not believe that the company's long-term opportunity is impaired based on results and guidance," Devitt said, "and our thesis remains intact."
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
4 Career Moves to Make Now if You're Worried About a Recession
Worried about a recession? These steps to protect your job prospects will help you professionally whether a downturn develops or not.
-
How StoryCorps Works and How You Can Tell Your Story
StoryCorps has recorded conversations between thousands of people, and anyone can participate. National facilitator Alan Jinich explains how to share your story.
-
I'm a Retirement Psychologist: Here's Why Doing What You 'Ought' in Retirement Beats Doing Whatever You Want
True retirement freedom isn't about simply doing whatever you want, but about finding purpose and direction through commitments that align with your deepest values and allow you to contribute meaningfully.
-
Tactical Roth Conversions: Why 2025-2028 Is a Critical Window for Retirees
The One Big Beautiful Bill (OBBB) extended today's low tax brackets, but they may not last. Here's how smart planning now can prevent costly tax surprises later.
-
Ready to Retire? It's Not Too Late to Convert to a Roth IRA
Millions of Americans are turning 65 this year. If you're retiring soon, don't dismiss the idea of a Roth conversion — it could still be a smart move even now.
-
9 Warren Buffett Quotes for Investors to Live By
Warren Buffett transformed Berkshire Hathaway from a struggling textile firm to a sprawling conglomerate and investment vehicle. Here's how he did it.
-
I'm a Financial Adviser: Three Things You Will Wish You Did Before the Fed Cuts Interest Rates
With potential interest rate cuts on the horizon, you might want to lock in today's higher yields and consider adjusting your asset allocation.
-
Simple Ways to Save on Back-to-School Shopping This Year
Set a budget and stick to it, scour the house for what you already have, decorate backpacks and lunch boxes with your kids and consider buying some items during holiday sales.
-
Stocks End Strong Month on a Down Note: Stock Market Today
There was likely a bit of profit-taking ahead of a historically weak September.
-
If You'd Put $1,000 Into UnitedHealth Group Stock 20 Years Ago, Here's What You'd Have Today
UNH stock was a massive market beater for ages – until it wasn't.