The Trade Desk Stock Plunges on Soft Revenue, Weak Outlook
The Trade Desk stock is plunging Thursday after the advertising platform missed fourth-quarter revenue expectations and issued weak first-quarter guidance.


The Trade Desk (TTD) stock is tanking Thursday after the advertising platform beat on earnings but came up short of revenue expectations for its fourth quarter and issued a weaker-than-expected top-line forecast for its first quarter.
In the three months ending December 31, The Trade Desk's revenue increased 22.3% year over year to $741 million. Earnings per share (EPS) rose 43.9% from the year-ago period to 59 cents.
"The Trade Desk once again outpaced nearly every segment of digital advertising in 2024," said CEO Jeff Green in a statement, citing annual revenue growth of 26% to $2.4 billion as well as "a record $12 billion of spend on our platform." Green also said The Trade Desk "achieved significant profitability and cash flow."

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The CEO did say The Trade Desk is "disappointed that we fell short of our own expectations in the fourth quarter."
Results were mixed compared with analysts' expectations. Wall Street was anticipating revenue of $758.9 million and earnings of 57 cents per share, according to Barron's.
The Trade Desk forecast revenue of at least $575 million for its first quarter, which also fell short of analysts' expectations of $582.1 million.
The Trade Desk also announced that its board of directors approved an additional $564 million in share repurchases under its current program, bringing the total authorized amount to $1 billion.
Stock buybacks are another way for corporations to boost value for shareholders.
Is The Trade Desk stock a buy, sell or hold?
The Trade Desk has had strong run over the trailing 12 months, nearly tripling the S&P 500's gain with a total return of 65.4% vs 22.2% for the index. And Wall Street is still bullish on the tech stock.
According to S&P Global Market Intelligence, the average analyst target price for TTD stock is $123.09, representing implied upside of more than 46% to current levels. And the consensus recommendation is a Buy.
Analysts will reassess and may revise their ratings and price targets following the disappointing quarter. Indeed, financial services firm Wedbush has already updated its view on the communications services stock.
Analyst Scott Devitt reiterated his Outperform rating (equivalent to a Buy) but lowered his price target to $120 from $145 yesterday.
"The Trade Desk reported disappointing results and guided 1Q below expectations," Devitt wrote in a note on Wednesday, acknowledging the reaction in the after-hours trading market.
"We do not believe that the company's long-term opportunity is impaired based on results and guidance," Devitt said, "and our thesis remains intact."
Related Content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
CoreWeave IPO: Should You Buy CRWV Stock?
The CoreWeave IPO will mark the biggest public offering of the year, with the AI cloud company expected to start trading on the Nasdaq in late March.
By Karee Venema Published
-
3 Certificate of Deposit Accounts I Wouldn't Use Right Now
The good news is you can earn over 4% on many CDs. However, here are three kinds of CDs I wouldn’t recommend currently.
By Sean Jackson Published
-
CoreWeave IPO: Should You Buy CRWV Stock?
The CoreWeave IPO will mark the biggest public offering of the year, with the AI cloud company expected to start trading on the Nasdaq in late March.
By Karee Venema Published
-
Nvidia Stock's Been Growing for Years. Just Look At Its 100,000% Return
Nvidia shareholders have had to stomach intense volatility over the years, but they have come out on top thanks to the AI chipmaker's bellwether status.
By Louis Navellier Published
-
10 Tax Topics Every Retiree Should Know About
A little knowledge can go a long way toward saving on your tax bill. Print this out and take it to your tax planner so you can have a productive chat.
By Michael Miller Published
-
It's No Surprise That Berkshire Hathaway's in the 100,000% Return Club
Warren Buffett's fascination with the insurance industry has helped Berkshire Hathaway's stock return snowball.
By Louis Navellier Published
-
4 Turnaround Stocks to Consider – and 2 More to Keep an Eye On
A turnaround stock is a struggling company with a strong makeover plan that can pay off for intrepid investors.
By Nellie S. Huang Published
-
Facing a Layoff? Ask Your Employer These Questions Now
If you're being laid off or forced into early retirement, don't make any decisions without proper guidance — and that starts by asking some key questions.
By Ben Maxwell, ChFC®, AAMS® Published
-
Stock Market Today: Dow Jumps 674 Points in Friday's Relief Rally
The gains weren't limited to stocks, though, with gold futures closing above the $3,000 per ounce mark for the first time.
By Karee Venema Published
-
Have $1M+ Saved? Consider a Financial Planning One-Stop Shop
A 'one-stop shop' team — including a financial planner, estate planning lawyer, CPA and more — could serve all of your tax, estate and retirement planning needs.
By Joe F. Schmitz Jr., CFP®, ChFC® Published