Trade Desk Stock (NASDAQ:TTD) Under Pressure Into Earnings – What To Expect

The Trade Desk Inc. (NASDAQ:TTD), a leading player in the digital advertising technology sector, finds itself under considerable pressure as it heads into its Q3 2025 earnings report, scheduled for release after market close today.

Trading at $48.40 per share in the pre-market, TTD's stock has eked out a gain 1.47% since the previous close, but this provides little solace against a backdrop of significant year-to-date underperformance. The stock is down approximately 59.41% over the past 52 weeks, a figure that underscores the challenges the company has faced.

Analysts are projecting an Earnings Per Share (EPS) of $0.41 for the current quarter (Q3 2025), $0.58 for the next quarter (Q4 2025), $1.78 for the current year (2025), and $2.11 for the next year (2026). Any significant deviation from these figures could trigger substantial price movement in either direction.

The past year has been eventful, to say the least, for The Trade Desk. Several key events have demonstrably impacted the stock's trajectory.

One of the most significant blows came on August 8th, when CEO Jeff Green highlighted the negative impact of tariff-related uncertainties on major advertisers. The stock plummeted nearly 33% in premarket trading following Green's cautionary statement. The market capitalization loss exceeded $12 billion, and numerous analysts subsequently reduced their price targets for the stock. This event underscored the company's vulnerability to macroeconomic headwinds, particularly given its focus on large, global brands.

Just prior to this, on August 7th, the company reported Q2 2025 financial results, revealing a 19% year-over-year revenue increase to $694 million. While seemingly positive, the stock still declined by a staggering 39.46% in after-hours trading. The announcement of Alex Kayyal as the new CFO, succeeding Laura Schenkein, was largely overshadowed by the market's negative reaction to the overall results and forward guidance.

Adding to the volatility, the company's Q4 2024 financial results, reported on February 12, 2025, revealed revenue of $741 million, falling short of its guidance of at least $756 million. This marked the first revenue miss in 33 quarters, attributed to a slower-than-anticipated rollout of the Kokai platform, its flagship AI powered platform. The stock price subsequently fell over 30%.

On a more positive note, The Trade Desk's inclusion in the S&P 500 Index on July 18th, was a significant milestone. However, this achievement appears to have been insufficient to counteract the negative forces weighing on the stock. Furthermore, earlier speculation about a potential merger with Roku Inc. in December 2024 provided only a temporary boost to the stock price.

The company has also been actively developing its technology, with the launch of the AI-powered Kokai platform upgrade in August. The Trade Desk aims for full adoption by the end of 2025, focusing on connected TV (CTV) and retail media.

While the prevailing narrative paints a picture of a company struggling against macroeconomic forces and execution challenges, a contrarian viewpoint suggests that the market may be significantly undervaluing The Trade Desk's long-term potential. The recent setbacks, while undeniably impactful, could be viewed as temporary growing pains rather than fundamental flaws in the company's business model.

The rapid adoption of CTV and the increasing importance of data-driven advertising present significant opportunities for The Trade Desk. The Kokai platform, despite its initial rollout challenges, represents a substantial investment in AI-powered technology that could ultimately provide a significant competitive advantage. Furthermore, the company's inclusion in the S&P 500 Index provides increased visibility and access to capital, which could fuel future growth.

The Trade Desk's technology and market position remain strong, and its experienced management team is capable of navigating the current headwinds and delivering long-term value. The stock's current depressed valuation may not reflect its true intrinsic worth.