Trade Desk (TTD) Plunges 11.9% on PT Downgrade

Trade Desk, Inc. (TTD) suffered an 11.95% drop on Wednesday, closing at $46.14 per share after Morgan Stanley downgraded the stock to “equalweight” from “overweight” and lowered its price target to $50 from $80.

Morgan Stanley cited concerns about TTD’s connected TV business, execution issues, softness in the open web ad market, and heightened competition as reasons for the downgrade.

Factors like advertisers pushing back and Amazon’s rapid advertising platform expansion, including partnerships with Roku and Disney, contributed to Morgan Stanley’s decision, which sees limited upside and balanced risk reward for TTD.

While TTD has potential as an investment, Morgan Stanley believes other AI stocks offer better returns with less downside risk, pointing investors towards a free report on the best short-term AI stock.