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The Trade Desk Is Now the Worst-Performing S&P 500 Stock This Year. Is it a Buying Opportunity or a Red Flag?
Yahoo Financeยท 2025-09-16 08:55
Group 1 - The Trade Desk was previously a high-performing stock, recognized as a leading independent demand-side platform in the ad tech industry, benefiting from new platforms like Connected TV and retail media [1] - In 2023, The Trade Desk faced significant challenges, including a slowdown in growth attributed to competition from major tech companies with their own ad ecosystems, leading to a 61% decline in stock price year-to-date as of September 11 [2] - The company experienced its first-ever guidance miss in February, which was attributed to internal execution errors rather than external competition or technology changes [5] Group 2 - Despite a brief recovery in the first quarter of 2023, The Trade Desk reported its slowest growth quarter in history at 19%, excluding the pandemic's onset [6] - For the third quarter, the company projected revenue growth to slow to at least 14%, with a potential adjustment to 18% when excluding political ad spend declines [7] - The Trade Desk's growth deceleration is influenced by competition and a maturing Connected TV market, although its valuation has become more attractive [8]