The Trade Desk, Inc. (NASDAQ:TTD) stock declined Thursday after the company issued a weaker-than-expected revenue outlook for the first quarter of 2026, dampening investor enthusiasm despite a modest fourth-quarter 2025 earnings beat.
Earnings Snapshot
For the quarter, The Trade Desk reported earnings of 59 cents per share, surpassing consensus estimates by one cent. However, the company’s first-quarter revenue guidance of more than $678 million fell short of the $689.48 million analyst estimate, triggering a negative reaction in the stock.
“The Trade Desk delivered $2.9 billion in revenue in 2025 while continuing to generate significant profitability and cash flow,” said Jeff Green, Co-Founder and CEO of The Trade Desk. “We executed against a backdrop of macro uncertainty while making some of the most meaningful upgrades in our company’s history.”
Recent Updates
Recent reports show Cathie Wood’s ARK Invest outperforming the S&P 500 in 2025, driven by strong gains in Robinhood Markets Inc. (NASDAQ:HOOD), Advanced Micro Devices Inc. (NASDAQ:AMD), and Palantir Technologies Inc. (NYSE:PLTR), reinforcing its high-growth technology investment strategy.
However, The Trade Desk was among ARK’s laggards. ARK pointed to increased competition from large-cap tech platforms and a reorganization of the finance function that added to investor uncertainty in 2025.
Technical Analysis
Over the past 12 months, The Trade Desk has seen a 65.26% decline in its stock price. Currently, the stock is trading 22.4% below its 20-day SMA of $27.03 and 60.5% below its 200-day SMA of $53.09. This positioning indicates a strong bearish trend over both short and long-term periods.
Technical indicators further underscore the bearish sentiment, with the RSI at 29.74, suggesting that the stock is oversold. However, the MACD presents a contrasting signal, indicating a bullish crossover as it stands at -2.5364, above its signal line at -2.6811.
Next Earnings
Looking further out, the next major catalyst for the stock arrives with the May 7, 2026, earnings report.
- EPS Estimate: 41 cents (Up from 33 cents YoY)
- Revenue Estimate: $841.15 million (Up from $616.02 million YoY)
- Valuation: P/E of 28.6x (Indicates premium valuation)
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $55.97. Recent analyst moves include:
- Loop Capital: Downgraded to Hold (Lowers Target to $25.00) (Feb. 26)
- Wedbush: Neutral (Lowers Target to $23.00) (Feb. 24)
- Benchmark: Buy (Lowers Target to $40.00) (Feb. 23)
Benzinga Edge Scorecard
Below is the Benzinga Edge scorecard for The Trade Desk, highlighting its strengths and weaknesses compared to the broader market:
- Value: Weak (Score: 59.46) — The stock’s valuation presents a premium compared to industry peers.
- Quality: Weak (Score: 19.66) — Reflects concerns about the company’s operational efficiency and profitability metrics.
- Momentum: Bearish (Score: 1.5) — Indicates very weak performance indicators.
The Verdict: The Trade Desk’s Benzinga Edge signal reveals significant challenges. The low scores in Quality and Momentum suggest that the company is currently underperforming the broader market, which could influence investor strategies moving forward.
TTD Price Action: Trade Desk shares were down 14.98% at $21.39 during premarket trading on Thursday. The stock is trading at a new 52-week low, according to Benzinga Pro data.
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