Why trading desk stocks broke today
Advertising-Technology (ADTECH) Company Stocks Trade desk (NASDAQ: TTD) It was destroyed on Thursday after the company reported its financial results for the fourth quarter of 2024. As of 10am ET, trade desk stocks had fallen 31%, suddenly down 40% from their 52-week height.
In the fourth quarter, $741 million in trade desk revenue fell below management guidance and analyst expectations. This is rare for this company. Founder and CEO Jeff Green highlighted the company’s success over the year, but admitted that he was “disappointed that we weren’t able to meet our own expectations in the fourth quarter.”
Trade Desk forward guidance is also appearing today. In the fourth quarter, its revenues rose 22% year-on-year. But it’s about leading revenues of at least $575 million in the first quarter of 2025. This is only 17% growth since the first quarter of 2024.
In short, despite its leadership position on connected television, trade desk growth is slowing AdTech Space. And it has its foundation Growth Investor I’m worried.
Even if it drops 40% from the high, Trade Desk Stock has grown by more than 2,600% over the past decade. However, the ride was not smooth. As the chart below shows, it has deleted more than 40% several times.
Even after the price drops, trade desk inventory will still trade at an expensive 17x sales. Its sales growth rate is declining, especially considering management will slower faster than expected. That said, the company estimates market opportunities to exceed $900 billion, representing a major opposite opportunity. And that guidance for 17% growth in the first quarter is not sneezing.
I’m not saying it’s a bargain today, I’m not saying there’s nothing to worry about. But I say that the trade desk is a very consistent company and has been down before. This means ensuring thorough review from investors after today’s decline.
Consider this before purchasing inventory at the trade desk.
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