Parkev Tatevosian, CFA has positions in The Trade Desk. The Motley Fool has positions in and recommends The Trade Desk. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

Core Insights - The Trade Desk (TTD) highlights a shift in consumer behavior for the 2025 holiday shopping season, emphasizing earlier preparation, increased rational consumption awareness, and more complex decision-making processes across multiple platforms and touchpoints [1][2] Group 1: Brand Strategy - For "going abroad" brands, product positioning and market strategy in Q4 are crucial, moving away from solely relying on discounts to focusing on conveying core product value and establishing emotional connections with consumers [1] - TTD advises brands to extend their brand-building cycle throughout the year rather than intensifying brand messaging only in Q4, as established brands begin value communication as early as April or May [2] Group 2: Market Diversification - There is a notable increase in inquiries targeting markets outside the U.S., such as Europe and Asia-Pacific, indicating that "going abroad" companies are actively pursuing diversified strategies to mitigate risks and enhance stability during the shopping season [2] Group 3: Industry Perspective - The industry must recognize the importance of brand value to move away from low-price competition, enabling excellent "going abroad" brands to achieve reasonable returns and pursue sustainable, healthy development [3]

Company Overview - The Trade Desk, Inc. (TTD) is valued at a market cap of $22.9 billion and is a leading independent digital advertising technology company headquartered in Ventura, California [1] - TTD offers a self-service, cloud-based platform for advertisers to plan, manage, and optimize digital campaigns across various channels, including display, video, audio, native, and social media [1][2] Market Position - TTD is classified as a "large-cap" stock due to its valuation of $10 billion or more, positioning it as a significant player in the digital advertising ecosystem with a focus on transparency and data-driven insights [2] Stock Performance - TTD's stock has experienced significant declines, shedding 67% from its 52-week high of $141.53 on December 4, 2024, and has dipped 33% over the past three months, underperforming the S&P 500 Index, which returned 8.4% during the same period [3] - Over the past year, TTD's stock has plunged 57.8%, lagging behind the S&P 500's 15.4% rise, and on a year-to-date basis, TTD has dropped 60.2% compared to the index's 12.3% surge [4] - The stock has been below its 50-day moving average since mid-August and under its 200-day moving average since mid-February, indicating a prolonged bearish trend [4] Analyst Ratings - TTD received a downgrade from Morgan Stanley from "Overweight" to "Equal-Weight," reflecting a more cautious stance on the company's near-term growth outlook and suggesting limited upside potential at current valuations [5] - The consensus rating for TTD is "Moderate Buy" from 38 analysts, with a mean price target of $72.94, indicating a potential premium of 56% from current market prices [6]

These two companies fell by 30% or more in a single month.I won't keep you waiting. The two worst-performing stocks in the S&P 500 (^GSPC -0.50%) in August 2025 were The Trade Desk (TTD -0.23%) and Super Micro Computer (SMCI 0.09%). These were down by 37% and 30%, respectively, for the month.Since early August was the peak of earnings season, you might suspect that these moves were earnings-related. And you'd be 100% correct.In the case of The Trade Desk, its earnings contained disappointing third-quarter g ...

Core Insights - The Trade Desk (TTD) is well-positioned to capture growth opportunities in the advertising technology sector, particularly through its strong presence in CTV, retail media, digital audio, and data analytics [1] - The company's Joint Business Plans (JBPs) with global advertisers and agencies have reached record levels, indicating robust growth potential [2][10] Group 1: Joint Business Plans (JBPs) - JBPs are strategic agreements that define shared goals and responsibilities between partners, aimed at enhancing performance and mutual growth [2] - TTD is signing more multi-year JBPs than ever, with the number of active JBPs reaching a record high, leading to increased spending under these agreements [2][10] - Nearly 100 JBPs are currently in progress, many in late-stage development, showcasing a collaborative model with brands and their agencies [3] Group 2: Platform and Ecosystem Performance - TTD's platform, Kokai, powered by Koa AI, is delivering significant performance improvements, with clients experiencing over 20-point KPI enhancements [4] - OpenPath is enhancing supply chain efficiency, providing transparency to publishers and confidence to clients, resulting in substantial revenue gains [4] - The company emphasizes objectivity in ad tech, offering unbiased access to premium inventory, which is particularly beneficial for advertisers targeting live sports [4] Group 3: Competitive Landscape - The advertising technology market is competitive, with significant players like Google and Amazon, as well as independent companies such as Magnite and PubMatic [5] - Magnite is a leading supply-side platform (SSP) that has expanded through mergers and partnerships, including a notable collaboration with Netflix [6][7] - PubMatic is also an SSP, focusing on CTV and emerging revenue streams, with CTV now accounting for nearly 20% of its total revenues [8][9] Group 4: Financial Performance and Valuation - TTD's shares have declined by 57.7% over the past year, contrasting with the rise of the Zacks Internet -Services industry and S&P 500 composites [11] - The forward price/earnings ratio for TTD is 23.11X, which is lower than the industry average of 24.69 [12] - The Zacks Consensus Estimate for TTD's earnings for 2025 has decreased over the past 60 days, indicating potential challenges ahead [13]

Core Insights - The Trade Desk, Inc. (TTD) and Magnite, Inc. (MGNI) are prominent players in the digital advertising technology market, with TTD focusing on demand-side platforms and Magnite on supply-side platforms [1][10] Digital Advertising Market Overview - The global digital advertising market is projected to grow at a CAGR of 15.4% from 2025 to 2030, with video advertising leading the way due to its effectiveness in visual storytelling [2] Company Performance and Strategies The Trade Desk (TTD) - TTD's growth in Q2 2025 was significantly driven by connected TV (CTV) and retail media, with video accounting for a high-40s percentage of its overall business [4] - The Kokai platform upgrade has seen over 70% client adoption, with advertisers using Kokai increasing their spend by over 20% faster than those not using it [5] - TTD expects Q3 revenues of at least $717 million, reflecting a 14% year-over-year growth, with adjusted EBITDA around $277 million [6] - TTD's operating costs rose 17.8% year-over-year to $577.3 million, raising concerns about profitability if revenue growth does not keep pace [8] Magnite (MGNI) - MGNI's CTV contributions increased 14% year-over-year in Q2 2025, representing 44% of its contribution mix, bolstered by partnerships with major platforms [10] - The acquisition of streamr.ai aims to enhance CTV advertising accessibility for small and medium-sized businesses [10] - MGNI's DV+ business is experiencing momentum, with an 8% increase in contribution ex-TAC from the last reported quarter [13] - New generative AI tools are expected to drive operational efficiencies and new monetization opportunities for MGNI [14] Share Performance - Over the past three months, MGNI shares increased by 13.2%, while TTD shares fell by 32.9% [9][15] Valuation and Analyst Estimates - Both TTD and MGNI are considered overvalued, with TTD trading at a forward P/E ratio of 23.11X and MGNI at 21.99X [17][18] - Analysts have made marginal downward revisions for TTD's bottom line, while MGNI has seen an upward revision of 7.32% for the current fiscal year [19][22] Investment Outlook - MGNI holds a Zacks Rank 2 (Buy), indicating a stronger investment pick compared to TTD, which has a Zacks Rank 3 (Hold) [23]

Core Viewpoint - The Trade Desk has experienced significant stock performance fluctuations, with a 352% increase from 2020 to 2024, but a 63% decline in 2025, making it the worst-performing stock in the S&P 500 [1][2]. Financial Performance - The Trade Desk reported Q2 2025 results and projected Q3 revenue of $717 million, reflecting a growth rate of only 14%, which is notably low compared to historical performance [4][11]. Product Development - The company launched an AI-powered platform called Kokai, touted as the most significant upgrade to date, yet investor expectations for growth have not been met, leading to disappointment [6][11]. Client Feedback and Adoption - CEO Jeff Green indicated that all clients are expected to use Kokai by year-end, but reports suggest that many clients prefer the older Solimar platform due to user-friendliness issues, causing some to explore alternative adtech options [8][10]. Competitive Landscape - The Trade Desk faces competitive pressures from Amazon's growing advertising business and other platforms like Yahoo!, which offers lower take rates, prompting some advertisers to switch [9][10]. User Interface Concerns - The issues appear to stem from user interface problems rather than technological shortcomings, with the company actively seeking client feedback to make rapid improvements to Kokai [12][13]. Future Outlook - The Trade Desk is expected to address its current challenges, and with its history of success, it is likely to regain the anticipated growth rate once improvements are made [14].

Core Insights - The S&P 500 has reached record highs in 2025, but some individual stocks have experienced significant declines, with the worst performers losing between 47% and 62% of their value this year [1][2]. Group 1: Worst Performing Stocks - The Trade Desk (NASDAQ: TTD) is the worst performer, down 62.2% due to concerns over ad spending and competition, yet it maintains a strong position in programmatic advertising and high client retention [2][3]. - Lululemon Athletica (NASDAQ: LULU) has dropped 55.6% as North American demand slows, but it continues to show strong margins and brand loyalty while expanding internationally [2][7]. - Centene Corp. (NYSE: CNC) is down 47.6% amid regulatory uncertainty and reimbursement concerns, but it remains a major provider of government-backed healthcare plans with a diversified portfolio [2][11]. Group 2: Investment Opportunities - The Trade Desk's stock is trading at multi-year lows, presenting potential upside once industry challenges are resolved, currently priced at $44.47 [4]. - Lululemon's stock correction may offer a discounted entry point into a globally recognized brand, currently valued at $169.62 [8]. - Centene's scale and cost efficiency suggest that its recent selloff may be sentiment-driven, with potential for recovery once policy risks stabilize, last valued at $31.77 [13].

Two quality companies are on sale -- but only one looks like a dip worth buying right now.When great businesses sell off, investors should lean in -- but only after checking whether the fundamentals are still doing the heavy lifting. Intuitive Surgical (ISRG 0.76%), the robotic-surgery leader behind the minimally invasive da Vinci system, and The Trade Desk (TTD 1.27%), a programmatic advertising platform for the open internet, have both been under pressure this year.Both companies reported fresh quarterly ...

Group 1 - The Trade Desk (TTD) research indicates that despite global economic pressures, North American holiday retail sales are expected to grow [1][2] - Over 80% of consumers in the UK and Germany are prioritizing price in their shopping decisions, leading to increased price comparison behavior [1] - 43% of UK consumers and 56% of German consumers are considering reducing purchases from American companies, presenting new opportunities for Chinese brands [1] Group 2 - The holiday shopping season in 2025 will see consumers preparing earlier, with 50% of American consumers planning to complete most of their purchases before Black Friday [2][4] - eMarketer predicts a 1.2% year-over-year growth in US holiday retail sales for 2025, marking the lowest growth rate since 2009 [2] - Brands that maintain advertising spend during economic uncertainty are likely to achieve better ROI and sales growth, with 60% of such brands seeing improved returns [4] Group 3 - AI is becoming a crucial engine for companies expanding internationally, impacting product design, operational efficiency, and marketing tools [6] - The rapid iteration of AI technology is enabling brands to enhance their marketing strategies and operational capabilities [6] - TTD's programmatic advertising utilizes algorithms to match supply and demand in real-time, optimizing ad spend efficiency [7][8] Group 4 - Open Internet advertising is essential for brands, covering 75% of users' digital media time and facilitating cross-platform marketing strategies [8][9] - CTV (Connected TV) is the fastest-growing media channel, with 30% of digital media time spent by US consumers on CTV, enhancing brand engagement and emotional connection [9] - A premium internet multi-channel strategy centered on CTV is key for Chinese brands to boost short-term performance and build long-term brand equity during the holiday season [9]