What happened

The Trade Desk (TTD -1.80%) is one of numerous tech stocks that has been down on its luck recently. The flameout that was Snap's profit warning on Monday exacerbated this, although reaffirmed guidance subsequently brought some investors back to The Trade Desk. 

Still, the stock was down on a week-to-date basis Thursday evening; according to data compiled by S&P Global Market Intelligence, it was almost 7% in the red across that stretch of time.

So what

Tuesday was an awful day to be even distantly associated with the digital advertising space, and The Trade Desk is a leading name in that segment.

Person at a desk with head down and hands clasped in back.

Image source: Getty Images.

The blowback occurred after Snap, which is dependent on ad revenue, drastically reduced its second-quarter revenue and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) guidance. The Trade Desk couldn't escape the fallout from this announcement.

It did, however, provide some level of reassurance later in the week. In a regulatory filing, the company stood by the guidance it provided within its first-quarter results (originally published in mid-May). Specifically, The Trade Desk forecasts it will earn $364 million in its current (second) quarter, and post adjusted EBITDA of roughly $121 million.

Both figures would represent powerful growth over first-quarter 2021's top line of almost $220 million and adjusted EBITDA of $70.5 million.

Now what

I'd imagine that at least some of the investors who helped push The Trade Desk's share price up on the day that guidance was reaffirmed feel the company has been unfairly punished by association.

That view seems valid to me, as even with a slowing economy advertisers are sure to continue prioritizing digital. As The Trade Desk is a pacesetter in that segment, it stands a strong chance of getting through any challenging period better than many bears currently believe.