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. Image source: Getty Images. A revolving door In a ...

Group 1 - The company is experiencing a pattern of leadership turnover, particularly with the recent change in CFO [1] - Analysts express concerns regarding the judgment of those responsible for selecting the previous CFO [1]

Financial Performance - The Trade Desk expects to report revenue and adjusted EBITDA results consistent with previously reported guidance for the quarter and year ended December 31, 2025[4]. - Forward-looking statements indicate expectations of revenue and adjusted EBITDA based on historical performance and current plans[13]. - The company emphasizes that actual results may differ materially from forward-looking statements due to various risks and uncertainties[13]. Earnings Announcement - The earnings announcement for the quarter and year ended December 31, 2025 is scheduled for February 25, 2026[4]. Leadership Changes - Tahnil Davis has been appointed as the interim chief financial officer and principal financial officer effective January 24, 2026[6]. - Ms. Davis's employment agreement includes a base salary of $567,000 and a target annual bonus of $267,500 for part of 2026[9]. - The company plans to conduct an external search for a permanent chief financial officer following Ms. Davis's interim appointment[6]. - Alexander Kayyal's employment as chief financial officer was terminated effective January 24, 2026, but he will remain on the board of directors[10]. Market and User Data - The company has not disclosed specific user data or market expansion strategies in this report[4]. Press Release - A press release detailing these updates was issued on January 26, 2026[14].

Core Insights - The Trade Desk has appointed Tahnil Davis as Interim Chief Financial Officer effective January 24, while searching for a permanent successor [1][2] - Davis has nearly 11 years of experience with The Trade Desk and previously served as Chief Accounting Officer [1][2] - The company reaffirms its financial guidance for the fourth quarter of 2025, expecting revenue of at least $840 million and Adjusted EBITDA of approximately $375 million [3][8] Leadership Transition - Tahnil Davis is recognized for her deep expertise in financial management and has played a critical role in building the company's financial infrastructure [2] - CEO Jeff Green expressed confidence in Davis's leadership abilities and her understanding of the business [3] Financial Guidance - The Trade Desk expects to release its financial results for the fourth quarter and fiscal year ended December 31, 2025, on February 25, 2026 [5] - The company has not provided guidance for GAAP net income due to the complexity and variability of related charges [4]

Group 1 - The Trade Desk is expected to report its fourth-quarter results soon, with shareholders hoping for a turnaround after a significant decline in stock value, which is down about 74% from its all-time high of over $139 and approximately 55% over the last five years [1][2] - Despite the stock's poor performance, The Trade Desk's revenue and earnings have shown resilience, with third-quarter revenue reaching $739 million, reflecting an 18% year-over-year growth, although this is a deceleration from previous quarters [3][4] - Customer retention remains strong at over 95%, marking an 11-year streak, indicating that the underlying business is performing well despite stock market challenges [4] Group 2 - The Trade Desk's revenue growth has slowed, with management guiding for even slower growth in Q4 due to tough comparisons from political ad spending in 2024 [7] - When excluding political spending, the company's third-quarter revenue growth was actually 22% year-over-year, driven by increased ad spending on its AI-powered programmatic ad-buying platform, Kokai [5][6] - The company has been actively repurchasing shares, announcing an additional $500 million share repurchase authorization after spending $310 million on buybacks during Q3 [8]

Core Viewpoint - The article summarizes significant analyst rating changes that are expected to impact the market, highlighting upgrades, downgrades, and new coverage ratings for various companies [1][6]. Upgraded Ratings - Merril Lynch upgraded Darden Restaurants (DRI) from "Hold" to "Buy," raising the target price from $240 to $265, citing a value-driven operational strategy leading to stable customer traffic and market share growth [5]. - Mizuho Securities upgraded Procter & Gamble (PG) from "Neutral" to "Outperform," increasing the target price from $157 to $165, indicating potential for accelerated organic sales growth and improved profit margins [5]. - Royal Bank of Canada’s Cowen upgraded Fortinet (FTNT) from "Hold" to "Buy," maintaining a target price of $100, based on stable operational expectations for FY2026 [5]. - Deutsche Bank upgraded Applied Materials (AMAT) from "Hold" to "Buy," significantly raising the target price from $275 to $390, reflecting a favorable outlook for the wafer fabrication equipment industry in 2026-2027 [5]. - JPMorgan upgraded Acushnet Holdings (GOLF) from "Underweight" to "Neutral," increasing the target price from $74 to $96, due to a diversified product portfolio and pricing power [5]. Downgraded Ratings - Citizens Bank downgraded Trade Desk (TTD) from "Outperform" to "Market Perform," without providing a target price, citing increasing market competition and limited short-term catalysts for stock price appreciation [10]. - Deutsche Bank downgraded Sherwin-Williams (SHW) from "Buy" to "Hold," lowering the target price from $390 to $380, indicating potential downward pressure on valuation multiples until earnings growth can be proven [10]. - Jefferies downgraded Li Auto (LI) from "Buy" to "Hold," significantly reducing the target price from $28.80 to $17.50, due to intensified competition in the home SUV segment [10]. - Harbor Research downgraded Cleveland-Cliffs (CLF) from "Buy" to "Neutral," acknowledging improved fundamentals but noting that the current stock price reflects normalized earnings levels [10]. - JPMorgan downgraded Southern Copper (SCCO) from "Neutral" to "Underweight," slightly adjusting the target price from $119.50 to $117.50, indicating limited upside potential based on current copper spot prices [10]. New Coverage Ratings - Citigroup initiated coverage on Elf Beauty (ELF) with a "Buy" rating and a target price of $110, highlighting market share growth and potential from the acquisition of skincare brand Rhode [12]. - Freedom Capital initiated coverage on Hinge Health (HNGE) with a "Buy" rating and a target price of $59, forecasting a 23% revenue growth and an industry-leading profit margin of 82%-83% [12]. - Susquehanna Group initiated coverage on HEICO Corporation (HEI) with a "Neutral" rating and a target price of $385, projecting an 8% revenue CAGR and a 13% free cash flow CAGR from FY2026 to FY2028, while noting a significant valuation premium [12]. - Cantor Fitzgerald initiated coverage on Quanta Services (PWR) with an "Outperform" rating and a target price of $520, citing a multi-year investment cycle driven by modernization and electrification trends [12]. - Texas Capital initiated coverage on MGM China (MLCO) with a "Buy" rating and a target price of $11.50, emphasizing its unique non-gaming business model and alignment with Macau's tourism recovery [12].

Core Viewpoint - The Trade Desk Inc. has been downgraded by Citigroup from "Outperform" to "Market Perform" due to a significant decline in stock price and failure to meet revenue targets, despite strong fundamentals indicating potential for future growth [1][2][5]. Group 1: Stock Performance - The stock price of The Trade Desk is currently at $36.82, reflecting a recent increase of 4.22%, with fluctuations between $35.63 and $36.94 [4][5]. - Over the past year, the stock has experienced a high of $125.8 and a low of $34, indicating significant volatility [4]. - The company's market capitalization is approximately $18 billion, with a trading volume of 8.26 million shares, showcasing its substantial presence in the market [4]. Group 2: Financial Performance - Analysts project that the upcoming earnings report in early February will show revenue of approximately $841 million, an increase from $749 million [3]. - However, earnings per share are expected to decrease to $0.34 from $0.59, highlighting ongoing challenges for the company [3][5]. Group 3: Market Context - The downgrade by Citigroup is attributed to the stock's decline to levels not seen since June 2020, with TTD trading at multi-year lows and hitting new 52-week lows [2][5].

Group 1 - The Trade Desk is experiencing significant stock price declines, reaching multi-year lows not seen since June 2020, with consistent new 52-week lows as of January 20 [1] - The upcoming earnings report in early February 2026 is anticipated to potentially break the negative trend from the previous year, with analysts expecting approximately $841 million in revenue and $0.34 per share in earnings [2][4] - Despite the expected revenue growth, the market sentiment remains bearish, as the stock has fallen even after strong quarterly reports throughout 2025, indicating that numbers alone may not influence market reactions [4][5] Group 2 - The Trade Desk has undergone a leadership overhaul in 2025, appointing a new COO, CFO, and CRO, which investors will be monitoring for signs of a successful transition [6] - The company's international expansion is a key growth driver, with overseas deals contributing 13% of total revenue and growing faster than domestic sales, highlighting potential for long-term growth [7] - The Trade Desk's Unified ID 2 framework positions it as an alternative to major competitors like Alphabet, but the effectiveness of this strategy in a tight advertising budget environment remains to be seen [7]

Core Insights - The Trade Desk, Inc. (TTD) launched Kokai in 2023, a next-generation platform utilizing Koa AI to enhance programmatic advertising through advanced analytics and integrations, potentially reshaping TTD's revenue and competitive position [2][4] Group 1: Kokai Platform Features and Adoption - Kokai employs a distributed AI architecture with specialized models for various functions, improving efficiency and reliability in ad performance [3] - Nearly all TTD clients have tested Kokai, with 85% adopting it as their default platform, leading to significant performance improvements: 26% better cost per acquisition, 58% better cost per unique reach, and a 94% higher click-through rate [4][10] - Successful case studies include Specsavers reducing appointment booking costs by 43% and Danone increasing conversion rates by one-third for its Actimel brand [5] Group 2: Market Position and Competitive Landscape - TTD is well-positioned for market share growth in 2026, supported by Kokai's adoption, growth in connected TV (CTV) and retail media, and strong client retention, despite competition from Magnite, Inc. and Taboola.com Inc. [6] - Magnite reported a strong third quarter with 18% CTV growth, driven by its SpringServe ad server, while Taboola's new platform, Realize, enhances performance advertising capabilities across the open web [7][8] Group 3: Financial Performance and Valuation - TTD shares have declined by 71.7% over the past year, contrasting with the 61.6% growth of the Zacks Internet – Services industry [11] - TTD's forward price/earnings ratio stands at 26.86X, lower than the industry average of 29.52X [12] - The Zacks Consensus Estimate for TTD's earnings for 2025 has remained stable over the past 60 days [13]

Core Viewpoint - BofA has lowered the price target for Trade Desk (TTD) to $40 from $49 and maintains an Underperform rating on the shares, citing concerns over revenue growth and management changes [1] Group 1: Price Target and Rating - BofA reduced the price target for Trade Desk to $40 from $49 [1] - The firm continues to hold an Underperform rating on Trade Desk shares [1] Group 2: Financial Forecast - BofA forecasts that Trade Desk's Q4 results will at least meet guidance on revenue and adjusted EBITDA [1] - There is an expectation of topline deceleration in 2025 [1] Group 3: Competitive Concerns - Management changes at Trade Desk have heightened competitive concerns [1] - The analyst describes the stock as a "show me" story, indicating a need for evidence of revenue growth acceleration through 2026 to become more positive on the stock [1]