BTIG Downgrades The Trade Desk (TTD) Stock to Neutral

The Trade Desk, Inc. (NASDAQ:TTD) is one of the Reddit Stocks with the Highest Upside Potential. On August 8, BTIG downgraded the company’s stock to “Neutral” from “Buy” and removed the price target after The Trade Desk, Inc. (NASDAQ:TTD) posted Q2 2025 earnings. The firm’s earlier thesis around a Kokai-driven turnaround is not playing out, and BTIG anticipates the company’s shares to remain muted amidst an increased level of uncertainty around the macro and agency backdrop.

The Trade Desk, Inc. (NASDAQ:TTD) made strong progress in CTV, retail media, and the supply chain, strengthening the largest brands and agencies to reach audiences throughout the open internet. Amidst continued innovation in Kokai, higher adoption of OpenPath, and deeper partnerships throughout the ecosystem, the company continues to deliver strong value to its clients and helps to strengthen the open internet. The Trade Desk, Inc. (NASDAQ:TTD) injected AI across several parts of the system as the clients that have adopted Kokai saw significant performance improvements.

In the aggregate, The Trade Desk, Inc. (NASDAQ:TTD) continues to see over a 20-point improvement throughout key KPIs for campaigns running in Kokai. Baron Funds, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:

“The Trade Desk, Inc. (NASDAQ:TTD) is the leading internet advertising demand-side platform, enabling agencies to efficiently purchase digital advertising across PC, mobile, and online video channels. Shares fell on an earnings miss for the first time in 33 quarters. We believe the miss was due largely to a company reorganization in December and delays in its Kokai platform rollout, both of which we believe have since improved. We believe Trade Desk still represents the best option for biddable Connected TV (CTV) inventory. We note Trade Desk gained share against the incumbent Google in the last five years, even when Google charged low/no fees, and major companies like Netflix, Disney, and Spotify have opened their ad inventory to Trade Desk. Its market remains large and underpenetrated, as the shift to CTV advertising is still in the early stages. We believe Trade Desk can grow its top line by high teens to 20% year-over-year for years to come.”

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Disclosure: None. This article is originally published at Insider Monkey.