The Trade Desk (TTD) Stock Hits New 52-Week Low As Tariff Fears Rattle Growth Tech

Core Viewpoint - The Trade Desk Inc (NASDAQ:TTD) shares have reached a new 52-week low as investors react to President Trump's proposed tariffs on goods from several European countries, raising concerns about the impact on the company's advertising revenue [1][4]. Company Performance - The Trade Desk reported quarterly results in November with revenue of approximately $739 million, reflecting an 18% year-over-year increase, and earnings per share (EPS) of 45 cents, surpassing consensus expectations. The company guided for fourth-quarter revenue exceeding $840 million [5]. - Despite the positive earnings report, BofA Securities analyst Jessica Reif Ehrlich maintained an Underperform rating and reduced the price target from $49 to $40, citing concerns over macroeconomic headwinds from tariffs [6]. Market Conditions - The proposed 10% tariffs on goods from key European countries could negatively affect the margins of consumer and luxury brands that heavily invest in digital advertising, which is crucial for The Trade Desk's business model [3]. - The stock is currently trading 8.5% below its 20-day simple moving average (SMA) and 10.2% below its 100-day SMA, indicating bearish momentum. Over the past 12 months, shares have decreased by 72.56% [7]. Analyst Insights - The average price target for The Trade Desk is $65.32, with a consensus rating of Buy, despite a projected 15% decline in earnings [10]. - The stock is trading at a premium P/E multiple of 40.3x, indicating a steep valuation compared to peers, while the growth potential remains strong with a score of 90.67/100 [12]. ETF Exposure - The Trade Desk has significant weight in the SmartETFs Advertising and Marketing Technology ETF (NYSE:MRAD), which could lead to automatic buying or selling of the stock based on ETF inflows or outflows [13].