Should You Buy The Trade Desk After Its 68% Slump in 2025?

Group 1 - The Trade Desk's stock fell nearly 70% in 2025 and is down an additional 16% at the start of 2026, making it one of the worst performers in the S&P 500 [1][2] - The stock is now down nearly 80% from its all-time high, raising questions about whether it represents a value play or a value trap [2] - The decline in The Trade Desk's stock is attributed to slowing growth and rising competition, particularly from Amazon's rapidly growing ad service [3][4] Group 2 - Amazon's ad service generated $17.7 billion in revenue during Q3, up 24% year over year, while The Trade Desk's revenue increased at an 18% pace, totaling $2.8 billion over the past 12 months [4] - Advertisers are increasingly choosing Amazon's advertising model over The Trade Desk's, as it offers more optimal advertising space [5] - The Trade Desk's valuation has dropped from over 50 times forward earnings to 15 times forward earnings, compared to the S&P 500's 22.2 times forward earnings [6] Group 3 - The current valuation of The Trade Desk suggests a perception of shrinking rather than growth, despite the company still growing at a decent pace [7] - There is a belief that this represents a prime buying opportunity for The Trade Desk's stock, as it may return to a more reasonable market-average valuation level [7]