The Trade Desk (TTD) Slid on Investors’ Concerns

Core Insights - Brown Advisory's Large-Cap Growth Strategy reported a net return of -0.88% in Q3 2025, underperforming the Russell 1000 Growth Index due to underweighting speculative momentum-driven stocks despite significant exposure to AI [1] - The Trade Desk, Inc. (NASDAQ:TTD) experienced a one-month return of -16.25% and a 52-week decline of 71.36%, closing at $39.95 with a market capitalization of $19.533 billion on December 2, 2025 [2] - The Trade Desk's quarterly results slightly exceeded consensus, but its Q3 guidance disappointed investors compared to strong performances from peers like Meta, Google, and Amazon [3] Company Performance - The Trade Desk transitioned 75% of its customers to its new AI-powered platform, Kokai, with full adoption expected by year-end, leading to improved ROI for customers [3] - The Trade Desk reported revenue of $739 million in Q3 2025, reflecting an 18% year-over-year growth [4] - The number of hedge funds holding The Trade Desk decreased from 60 to 42 in Q3 2025, indicating a decline in popularity among institutional investors [4] Market Position - The Trade Desk is recognized as one of the largest independent demand-side advertising platforms globally, positioning itself for long-term growth in digital advertising [3] - Despite its potential, certain AI stocks are viewed as having greater upside potential and less downside risk compared to The Trade Desk [4]