Should You Buy The Trade Desk Stock After Its 40% Crash Post-Earnings? Wall Street Says This Will Happen Next.

Core Viewpoint - The Trade Desk experienced a significant stock decline of nearly 40% following its second-quarter financial results, the departure of its CFO, and a cautious outlook due to tariff uncertainties [1][11]. Financial Performance - The Trade Desk reported second-quarter revenue of $694 million, reflecting a 19% year-over-year increase, and a non-GAAP net income of $0.41 per diluted share, which is a 5% increase [9]. - The company provided weak guidance for the third quarter, projecting revenue growth of 14% to $717 million and adjusted EBITDA growth of 8% to $277 million [11]. Market Position and Competitiveness - The Trade Desk operates as an independent demand-side platform (DSP), differentiating itself from larger competitors like Amazon, Google, and Meta Platforms by not owning media content, which reduces conflicts of interest [4][5]. - The company has established critical partnerships with streaming platforms such as Netflix, Roku, and Disney, as well as retailers like Albertsons and Walmart, enhancing its position in connected TV (CTV) and retail advertising [6]. Growth Outlook - Despite the recent stock decline, analysts maintain a median target price of $80 per share for The Trade Desk, indicating a potential upside of 48% from its current price of $54 [2]. - The adtech industry is projected to grow at an annual rate of 14% through 2030, suggesting a favorable long-term environment for The Trade Desk [8]. - Wall Street analysts expect The Trade Desk's adjusted earnings to increase by 14% annually through 2026, which could justify its current valuation of 31 times adjusted earnings [14].