Despite reporting solid second-quarter results, The Trade Desk’s shares plummeted over 30% in after-hours trading to $61.72, marking one of its steepest declines since its IPO. Revenue rose 19% to $694 million, with net income increasing slightly to $90 million, while customer retention remained strong at over 95%. However, investor confidence was rattled by the unexpected departure of the long-serving CFO, who will step down on August 21 after more than a decade with the company. A board member and early investor will assume the role, with the outgoing executive staying on in an advisory capacity until year-end.
Cautious Outlook Adds Pressure
The company’s third-quarter revenue guidance of at least $717 million fell short of market expectations, further dampening sentiment. Analysts remain optimistic, citing The Trade Desk’s robust gross margin of 80% and the growing adoption of its proprietary advertising platforms. Several firms raised price targets, with one projecting $110 per share. Yet, the abrupt leadership change and tempered outlook underscore how even fundamentally strong companies can face volatility from unforeseen disruptions.
Ad
The Trade Desk Stock: Buy or Sell?! New The Trade Desk Analysis from November 8 delivers the answer:
The latest The Trade Desk figures speak for themselves: Urgent action needed for The Trade Desk investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from November 8.
The Trade Desk: Buy or sell? Read more here...
