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."

Sign up for Kiplinger’s Free E-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
Get Kiplinger Today newsletter — free
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.
-
Ford Recall 2025: Rearview Camera Glitch Affects 1.1 Million Vehicles
Over 1 million Ford and Lincoln vehicles are being recalled due to a software issue affecting rearview cameras. Here's what models are impacted and how owners can address the problem.
-
Monetizing a Hobby in Retirement: The Benefits and Pitfalls
Get extra cash in retirement to do what you love.
-
How One Widow Nearly Missed Out on $213,000 in Social Security
Losing your partner often means losing 30% to 50% of your household income. This financial adviser emphasizes that planning ahead and understanding the rules surrounding survivor benefits can help.
-
Simple Ways to Make Your Executor's Job Less of a Pain
Being an executor of an estate isn't easy, so you should do what you can to help them out. It can be as easy as making a list and being smart about your email accounts.
-
'Trump Accounts' for Newborns: A Great Idea That Could Be Better
According to this financial professional, limitations on the proposed $1,000 deposit at birth highlight shortcomings in our retirement landscape, but the potential is there to make a big difference.
-
Stock Market Today: Stocks Chop as Judges Block Then Reinstate Tariffs
The Trump administration has asked for and received a stay in a case that seems headed for the Supreme Court.
-
Opportunity Zones Expert Sees Bright Future in 'Big, Beautiful Bill'
New legislation introduces rural "super incentives" and expanded access, though a potential investment freeze could stall billions in community development funding. Here's what every investor needs to know.
-
Sorry, But AI Alone Doesn't Cut It for Financial Planning
Artificial intelligence has its place in retirement planning — but only as a tool. It falls short in several key areas that require a human touch.
-
Five Divorce Settlement Blind Spots: An Expert's Guide to What You Can't Afford to Miss
Even the best lawyers can miss tax and other financial considerations when drafting complex divorce settlements, so specialist advice is vital from the outset.
-
Stock Market Today: Stocks Struggle Ahead of Nvidia Earnings
The three main indexes closed lower as Wall Street awaited the AI bellwether's quarterly results.