Key Takeaways TTD has dropped 44% in six months even as peers and sector benchmarks moved higher.CTV, retail media, Kokai and OpenPath continue to support TTD's long-term growth outlook.Rising expenses, tougher competition and macro volatility pose near-term challenges for TTD.The Trade Desk (TTD) stock has seen a sharp 44% slide over the past six months, an uncomfortable drawdown for a company viewed as one of ad tech’s leading players.TTD’s decline stands in sharp contrast to the Zacks Internet Services i ...

Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against The Trade Desk, Inc. due to a class action complaint alleging breaches of fiduciary duties by the company's board of directors during a specified class period [1][2]. Group 1: Class Action Details - The class action alleges that during the class period from May 9, 2024, to February 12, 2025, Trade Desk made materially false and misleading statements regarding its business operations and prospects [2]. - Specific allegations include significant execution challenges in rolling out the Kokai platform, which delayed its rollout and negatively impacted revenue growth [2]. Group 2: Next Steps for Investors - Long-term stockholders of Trade Desk are encouraged to contact Bragar Eagel & Squire for more information regarding their rights and potential claims related to the class action [3]. Group 3: About the Law Firm - Bragar Eagel & Squire, P.C. is a nationally recognized law firm that represents individual and institutional investors in various complex litigations across state and federal courts [4].

Group 1 - The Trade Desk's stock has experienced a significant decline of 60% since the beginning of 2025, primarily due to disappointing earnings reports [1][4][5] - The company's position as a leading independent self-service platform for digital advertising provides a competitive edge over larger advertisers like Alphabet and Amazon [2][12] - Investor sentiment has turned overly pessimistic, influenced by the company's revenue growth deceleration and operational challenges with its AI platform, Kokai [2][6][10] Group 2 - In the first half of 2025, The Trade Desk reported revenue exceeding $1.3 billion, reflecting a 22% increase year-over-year, although this growth rate has slowed from 27% in the previous year [8][10] - Net income for the first half of the year reached $141 million, marking a 21% increase, despite rising costs and a higher income tax expense [9] - Analyst projections indicate a 17% revenue growth for both 2025 and 2026, suggesting that the company's guidance may be overly conservative [10][11] Group 3 - The Trade Desk's P/E ratio has decreased from 150 at the beginning of the year to 56, indicating a multiyear low and suggesting the stock may be entering value territory [11] - The stock is viewed as increasingly attractive for investment, particularly given the opportunities in the digital advertising market and the company's efforts to address competitive and operational concerns [12][13]

Core Viewpoint - The Trade Desk has experienced significant stock performance fluctuations, with a 352% increase from 2020 to 2024, but a 63% decline in 2025, making it the worst-performing stock in the S&P 500 [1][2]. Financial Performance - The Trade Desk reported Q2 2025 results and projected Q3 revenue of $717 million, reflecting a growth rate of only 14%, which is notably low compared to historical performance [4][11]. Product Development - The company launched an AI-powered platform called Kokai, touted as the most significant upgrade to date, yet investor expectations for growth have not been met, leading to disappointment [6][11]. Client Feedback and Adoption - CEO Jeff Green indicated that all clients are expected to use Kokai by year-end, but reports suggest that many clients prefer the older Solimar platform due to user-friendliness issues, causing some to explore alternative adtech options [8][10]. Competitive Landscape - The Trade Desk faces competitive pressures from Amazon's growing advertising business and other platforms like Yahoo!, which offers lower take rates, prompting some advertisers to switch [9][10]. User Interface Concerns - The issues appear to stem from user interface problems rather than technological shortcomings, with the company actively seeking client feedback to make rapid improvements to Kokai [12][13]. Future Outlook - The Trade Desk is expected to address its current challenges, and with its history of success, it is likely to regain the anticipated growth rate once improvements are made [14].

Core Insights - The Trade Desk, Inc. (TTD) has launched Deal Desk, an innovative feature within its Kokai platform aimed at improving the management of digital advertising deals through AI technology [1][10] - Deal Desk addresses issues such as deal underperformance, transparency, and inefficient pacing in programmatic advertising [1][2] Group 1: Deal Desk Features - Deal Desk provides advertisers with Deal Quality Scores to evaluate the performance of their deals against the open marketplace and premium supply channels [4] - Publishers can create transparent deal proposals using new APIs or an intuitive user interface, with access to the same Deal Quality Scores for market insights [5] - The platform automates deal activation and prioritization, allowing for strategic planning and performance optimization, while offering flexibility for deal adjustments [6] Group 2: Industry Adoption and Performance - Disney is one of the first publishers to adopt Deal Desk, indicating strong industry support for the tool [7] - The Kokai platform has shown significant performance improvements for clients, including a 42% reduction in cost per unique reach and a 24% reduction in cost per conversion [11] - Clients utilizing Kokai are leveraging approximately 30% more data elements per impression, enhancing campaign effectiveness [12] Group 3: Market Trends and Challenges - More marketers are transitioning to the Kokai platform for better results, as evidenced by Deutsche Telekom's successful use of Kokai to grow its MagentaTV subscriber base [8][9] - However, rising economic uncertainty and trade tensions may impact TTD, potentially leading to tighter advertising budgets and slower programmatic ad demand [13]

Core Viewpoint - Trade Desk experienced a significant recovery in Q1 2025 after a disappointing Q4 2024 earnings report, indicating potential for continued growth despite previous setbacks [1][2]. Group 1: Earnings Performance - Trade Desk's Q4 2024 earnings report marked the first time the company missed internal revenue expectations in 33 quarters, leading to a 33% drop in share price [1]. - In Q1 2025, the company reported a revenue growth of 25%, surpassing Wall Street's forecast of 17%, and adjusted earnings per share (EPS) grew by 27%, contrary to expectations of a 4% decline [6][7]. - The adjusted EBITDA margin increased by 82 basis points to 34%, significantly exceeding Wall Street's prediction of a drop to below 26% [7]. Group 2: Product Development and Adoption - The rollout of Trade Desk's next-generation ad tech platform, Kokai, faced challenges in Q4 2024 but saw accelerated adoption in Q1 2025, with two-thirds of customers transitioning ahead of schedule [5][8]. - Kokai has demonstrated improved client results, with the cost of acquiring a new customer dropping by 20% and the cost to reach a unique person with an ad decreasing by over 42% compared to the previous platform [9][10]. Group 3: Market Position and Future Outlook - Trade Desk operates primarily in the connected TV (CTV) advertising space, which is expected to grow as ad spending shifts from traditional TV, with only $29 billion spent on CTV in 2024 compared to nearly $60 billion for traditional TV [11]. - The company maintains a high customer retention rate above 95%, indicating strong client satisfaction and loyalty [10].

Core Viewpoint - The Trade Desk, Inc. (TTD) is expected to report a decline in earnings and revenues for Q1 2025, with challenges arising from competitive pressures and macroeconomic uncertainties [1][5][17]. Financial Performance - The Zacks Consensus Estimate for TTD's earnings in Q1 2025 is 25 cents, down from 26 cents in the same quarter last year, with a revenue estimate of $574.3 million, indicating a 16.9% year-over-year decline [1]. - TTD anticipates revenues of at least $575 million, reflecting a 17% year-over-year growth, despite challenges from the previous leap year and reduced political ad spending [2]. Earnings Surprise History - TTD has consistently beaten the Zacks Consensus Estimate for earnings in the past four quarters, with an average earnings surprise of 7.68% [2]. Market Position and Competition - The digital advertising industry remains highly competitive, with major players like Alphabet and Amazon exerting pressure on TTD's market position [5][17]. - TTD's stock has declined by 58.1% over the past six months, underperforming both the Internet Services industry and the S&P 500 composite [10]. Strategic Initiatives - TTD is focusing on international expansion, reorganization, and structural improvements to enhance internal effectiveness and scalability [9]. - The company is advancing its support for UID2, a privacy-centric identity solution, which is expected to improve digital advertising relevance and user control [8]. Valuation Metrics - TTD's stock is considered expensive, trading at a forward 12-month Price/Sales ratio of 9.08X, compared to the industry's 4.89X [14]. Investment Considerations - Given the negative Earnings ESP and Zacks Rank 5, it is suggested that investors consider offloading TTD stock from their portfolios [4][18].

Group 1 - A lawsuit is pending for investors in shares of The Trade Desk, Inc. (NASDAQ: TTD) who purchased shares prior to May 2024 [1][3] - The lawsuit alleges that The Trade Desk, Inc. made materially false and misleading statements regarding its business operations and prospects between May 09, 2024, and February 12, 2025 [2] - The plaintiff claims that the company faced significant execution challenges in rolling out its new platform, Kokai, which negatively impacted revenue growth and overall business operations [2] Group 2 - Investors are encouraged to contact the Shareholders Foundation for options related to the lawsuit [1][3] - The Shareholders Foundation provides services related to shareholder issues, including legal monitoring and information on securities class actions [3]

Core Viewpoint - Rosen Law Firm is reminding purchasers of Class A common stock of The Trade Desk, Inc. about the lead plaintiff deadline for a class action lawsuit related to misleading statements made by the company during the Class Period from May 9, 2024, to February 12, 2025 [1][5]. Group 1: Class Action Details - Investors who purchased Trade Desk Class A common stock during the specified Class Period may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [2]. - A class action lawsuit has already been filed, and interested parties must move the Court to serve as lead plaintiff by April 21, 2025 [3]. - The lawsuit alleges that Trade Desk made false and misleading statements regarding its business operations and the rollout of its AI forecasting tool, Kokai, which faced significant execution challenges [5]. Group 2: Rosen Law Firm's Credentials - Rosen Law Firm emphasizes the importance of selecting qualified legal counsel with a successful track record in securities class actions, highlighting its own achievements in this area [4]. - The firm has recovered hundreds of millions of dollars for investors, including over $438 million in 2019 alone, and has been recognized as a leader in securities class action settlements [4].

Core Viewpoint - The Trade Desk, Inc. is facing a class action lawsuit due to allegations of issuing materially false and misleading statements regarding its AI forecasting tool, Kokai, and its impact on the company's business operations and revenue growth [1][2]. Group 1: Allegations and Impact - The lawsuit claims that during the class period from May 9, 2024, to February 12, 2025, The Trade Desk encountered significant execution challenges in rolling out its AI tool, Kokai, which included difficulties in transitioning clients from the older platform, Solimar [1]. - These execution challenges reportedly delayed the rollout of Kokai, adversely affecting the company's business operations and revenue growth [1]. - As a result of these issues, the positive statements made by the company regarding its business and prospects were deemed materially false and misleading [1]. Group 2: Class Action Details - Shareholders who purchased shares of The Trade Desk during the specified class period are encouraged to register for the class action, with a deadline set for April 21, 2025 [2]. - Once registered, shareholders will receive updates through a portfolio monitoring software regarding the status of the case [2]. - There is no cost or obligation for shareholders to participate in this class action [2].