Why The Trade Desk Stock Tumbled on Tuesday
Yahoo Finance ·
Investors enthusiastically traded the stock of The Trade Desk ( TTD 3.00% ) on Tuesday, however for the most part they were selling it. On an analyst's downgrade, many didn't hesitate to unload their holdings, leaving the adtech specialist with a nearly 4% loss on the day. That downgrade came from Arete's Richard Kramer, who made the move well before market open on Tuesday. He shifted his recommendation to sell from his previous neutral, and set a price target of $11.60 per share. According to reports, Kramer wrote in his The Trade Desk update that the company faces the prospect of market share loss. If that occurs, fiscal 2027 revenue could come in notably lower than the previous year's. Although the analyst noted that The Trade Desk has new products to roll out to its clientele, it's facing some blowback in the market. The agencies and marketers who use its services are calling for more transparency in those offerings. Finally, Kramer added that management is moving toward a more capital-intensive business model. This is likely to impact profitability.
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