The Trade Desk(US:TTD) Yahoo Finance·2026-01-08 16:46Core Viewpoint - The Trade Desk experienced a significant decline in stock value, falling 67.7% in 2025 due to slowing revenue growth and increased competition in the digital advertising landscape, particularly from Amazon and advancements in artificial intelligence [1] Revenue Growth - For the first nine months of 2025, The Trade Desk reported a revenue growth of 20%, which is a decrease from the 27% growth achieved in the same period of 2024 [2] Competitive Landscape - The Trade Desk faces heightened competition in the TV advertising sector, notably from Amazon, which has launched its own demand-side platform (DSP) and secured inventory agreements with Netflix, expanding its advertising reach [3] - The rise of AI poses another threat, as it enhances advertising targeting capabilities for competitors like Google and Instagram, potentially diverting advertising spend away from The Trade Desk [4] Financial Metrics - Following the stock's decline, The Trade Desk's market capitalization stands at $18 billion, with a net income of $439 million over the past twelve months, resulting in a trailing price-to-earnings (P/E) ratio of 43, which is among the lowest the company has traded at but still represents a premium compared to the broader market [7] - Despite maintaining double-digit growth, concerns remain regarding the effectiveness of Amazon's advertising technology and the disruptive potential of AI in the advertising market [8]