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Thu, February 13, 2025

The Trade Desk Stock Plunges on Soft Revenue, Weak Outlook


Published on 2025-02-13 12:01:11 - Kiplinger
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  • 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, a leading demand-side platform for digital ad buyers, experienced a significant drop in its stock price after reporting weaker-than-expected revenue and providing a disappointing outlook for the upcoming quarter. Despite a 21% year-over-year revenue increase to $491 million in the fourth quarter, the company's growth was slower than anticipated, particularly in the U.S. market where revenue grew by only 18%. The company attributed this slowdown to cautious spending by advertisers due to economic uncertainties. Additionally, The Trade Desk forecasted first-quarter revenue to be between $363 million and $370 million, which was below the $376 million expected by analysts. This outlook, combined with a projected adjusted EBITDA margin of 28% to 30%, led to a 25% plunge in its stock price in after-hours trading. The company also highlighted challenges in the connected TV (CTV) advertising space, where despite growth, competition from platforms like Netflix and Disney+ has intensified.

Read the Full Kiplinger Article at:
[ https://www.kiplinger.com/investing/stocks/the-trade-desk-stock-plunges-on-soft-revenue-weak-outlook ]
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