From Yahoo Finance.: 2025-04-01 07:00:00

The Trade Desk (NASDAQ: TTD) saw a phenomenal 6,100% rally since its IPO in 2016, reaching a record closing price of $139.51 in 2024. However, its stock now trades at around $57, having lost over half its value due to concerns about slowing growth.

The Trade Desk operates the world’s largest independent DSP for digital ads, competing with tech giants like Google and Meta. It’s expanding its CTV business and offering solutions like Solimar and UID2 to collect first-party data, aiming to become a more diversified advertising company.

Despite its stunning growth in revenue and EBITDA since 2016, The Trade Desk’s stock took a hit in 2025, leading to a reduced enterprise value of $26.1 billion. Analysts expect slower growth and higher costs, but its valuations are reasonable considering its growth rates.

For the first quarter of 2025, The Trade Desk expects a 17% revenue increase year over year, with EBITDA declining approximately 10%. Analysts predict an 18% revenue rise for the full year, causing concern for investors amidst macroeconomic headwinds affecting the advertising sector.

Investors may find opportunities in The Trade Desk’s stock as it faces challenges in 2025. Despite recent setbacks, its long-term growth prospects and innovative solutions could still attract patient investors looking for potential opportunities in the digital advertising market.

Read more: Is The Trade Desk Stock a Buy?