Internal Issues and Competition Impacted Trade Desk's (TTD) Performance in Q3

Carillon Tower Advisers, an investment management company, released its “Carillon Eagle Mid Cap Growth Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, the equity markets continued their rally, fueled by enthusiasm for AI, limited evidence of inflationary effects from tariffs, and expectations for further interest rate cuts from the U.S. Federal Reserve. Mid-cap stocks also maintained their positive gains during the quarter. The Russell Midcap Growth Index (up 2.78%) underperformed the Russell Midcap® Value Index (up 6.16%) in the quarter. The letter further shared the firm's detailed views on Cyclicals, Healthcare, Information Technology, Financials, and Consumer sectors. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, Carillon Eagle Mid Cap Growth Fund highlighted stocks such as The Trade Desk, Inc. (NASDAQ:TTD). Headquartered in Ventura, California, The Trade Desk, Inc. (NASDAQ:TTD) is a technology company that offers a self-service cloud-based ad-buying platform. The one-month return of The Trade Desk, Inc. (NASDAQ:TTD) was -24.40%, and its shares lost 69.72% of their value over the last 52 weeks. On November 10, 2025, The Trade Desk, Inc. (NASDAQ:TTD) stock closed at $39.06 per share, with a market capitalization of $19.098 billion.

Carillon Eagle Mid Cap Growth Fund stated the following regarding The Trade Desk, Inc. (NASDAQ:TTD) in its third quarter 2025 investor letter:

"The Trade Desk, Inc. (NASDAQ:TTD) is one of the largest independent advertising platforms in the world and helps customers place ads on the web, connected TV, mobile devices, and podcasts. The company reported earnings below expectations due to internal execution issues and increasing competition. Management has since outlined clear strategies to address execution issues, but shareholders remain concerned. We continue to support the stock due to Trade Desk’s strong position in ad spending as the only independent player of scale that we believe can compete with large internet companies, along with its strong margins and cash flow, plus its attractive valuation."

The Trade Desk, Inc. (NASDAQ:TTD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 60 hedge fund portfolios held The Trade Desk, Inc. (NASDAQ:TTD) at the end of the second quarter, which was 61 in the previous quarter. In the third quarter of 2025, The Trade Desk, Inc. (NASDAQ:TTD) reported revenue of $739 million, representing an 18% year-over-year growth. While we acknowledge the potential of The Trade Desk, Inc. (NASDAQ:TTD) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered The Trade Desk, Inc. (NASDAQ:TTD) and shared the list of stocks Jim Cramer discussed. The Trade Desk, Inc. (NASDAQ:TTD) detracted from Baron Technology Fund's performance in Q3 2025. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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