Shares of The Trade Desk (TTD -6.41%) were falling again on Monday as Wall Street reactions to last week's dismal earnings report rolled in.
As of 9:55 a.m. ET, the stock was down 4.7% on the news.
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The Trade Desk sinks again
In its second-quarter earnings report, The Trade Desk reported revenue growth that slowed to just 3%, its slowest growth rate in its history, except for the first quarter during the pandemic.
The company's guidance for the third quarter also implied a decline in revenue, showing the business is collapsing as walled gardens like Amazon, Apple, and Alphabet seem to be outcompeting it for ad dollars.
This morning, HSBC downgraded the stock from hold to reduce and gave it a $10 price target, implying the stock would fall another 30% over the next year due to weakening relationships with agency partners, competitive pressure, and struggles to capitalize on AI advertising.
Morgan Stanley also lowered its price target from $26 to $13 and maintained an equal weight rating on the stock.
NASDAQ: TTD
Key Data Points
Can The Trade Desk bounce back?
Trade Desk stock is now down roughly 90% from its peak at the end of 2024 as the company has reported a string of disappointing quarterly results, with revenue growth consistently slowing.
Despite the challenges, CEO Jeff Green seems more focused on spinning the results than on overhauling the business to better compete with the walled gardens.
With revenue and profit now on track to fall in the third quarter, it's hard to see a compelling case to buy the adtech stock right now.
