Cloud-based stock Trade Desk Inc (NASDAQ:TTD) is taking a nose dive today, last seen down 39.2% to trade at $53.68, after the company posted a second-quarter earnings miss and slower revenue growth, though revenue exceeded expectations. The firm also announced that Alex Kayyal is replacing Laura Schenkein as the CFO, while CEO Jeff Green warned of the potential impacts of tariffs.
In response, BofA Global Research double downgraded Trade Desk stock to "underperform" from "buy." Wedbush and Citigroup both downgraded the stock to "neutral," while MoffettNathanson slashed its rating to "sell." The stock saw a handful of price-target cuts as well.
This marks TTD's second massive post-earnings drop this year, after a 32.9% drop in February. Should these losses hold, today will mark the stock's largest-ever single-day percentage drop. This comes just a few weeks after TTD replaced Ansys (ANSS) on the S&P 500 Index (SPX). Now trading at its lowest levels since May, the stock is down roughly 54% year-to-date.
So far, the equity has seen 227,000 calls and 156,000 puts exchanged, which is already 6.2 times the options volume it typically sees in an entire session. The weekly 8/8 50-strike put is the most popular, with new positions opening there. Also notable -- Trade Desk stock has landed on the short sell restricted (SSR) list amid the volatility.
The stock has also tended to outperform volatility expectations over the past year, per its Schaeffer's Volatility Scorecard (SVS) of 96 out of 100.
