Internal Issues and Competition Impacted Trade Desk’s (TTD) Performance in Q3

Core Insights - Carillon Tower Advisers released its third-quarter 2025 investor letter for the Carillon Eagle Mid Cap Growth Fund, highlighting a continued rally in equity markets driven by enthusiasm for AI, limited inflationary effects from tariffs, and expectations for interest rate cuts from the U.S. Federal Reserve [1] - The Russell Midcap Growth Index increased by 2.78%, underperforming the Russell Midcap® Value Index, which rose by 6.16% during the same quarter [1] Company Analysis: The Trade Desk, Inc. (NASDAQ:TTD) - The Trade Desk, Inc. is a significant independent advertising platform, providing a self-service cloud-based ad-buying platform [2][3] - The company experienced a one-month return of -24.40% and a 52-week loss of 69.72%, with its stock closing at $39.06 and a market capitalization of $19.098 billion on November 10, 2025 [2] - In the third quarter of 2025, The Trade Desk reported revenue of $739 million, reflecting an 18% year-over-year growth [4] - Despite recent earnings falling below expectations due to internal execution issues and increased competition, management has outlined strategies to address these concerns [3] - The company is viewed positively due to its strong position in ad spending, robust margins, cash flow, and attractive valuation, although there are concerns among shareholders [3] Market Sentiment - The Trade Desk is not among the 30 most popular stocks among hedge funds, with 60 hedge fund portfolios holding its shares at the end of the second quarter, down from 61 in the previous quarter [4] - While the potential of The Trade Desk as an investment is acknowledged, certain AI stocks are considered to offer greater upside potential with less downside risk [4]