Trade Desk Inc. (TTD) shares plummeted 5.08% during Thursday's intraday trading session, as investors took profits ahead of the company's highly anticipated second-quarter earnings report due after the market close. The decline nearly erased the stock's 5.03% gain from the previous session.
Wedbush Securities noted that while Trade Desk is expected to post Q2 revenue growth of 9% year-on-year to $757 million, slightly above the consensus estimate of $752 million, the company faces long-term structural headwinds. The ongoing dispute with Publicis has created lasting pressure to improve fee transparency and platform compliance, which could increase expenses and erode the company's competitive pricing advantage.
Adding to the negative sentiment, Arete Research recently downgraded Trade Desk to Sell with a price target of just $11.60, well below the analyst consensus mean target of $25.41, reflecting a bearish outlook on the stock's valuation.
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