The Trade Desk’s stock price (NASDAQ: TTD) fell dramatically into the weekend, with a 38.61% decline on Friday pulling the stock into a close at $54.23. If TTD bulls were hoping the worst is over, a Jefferies downgrade on the stock to “Hold” from “Buy”, whilst cutting their price target in half from $100 to $50 may give bears more to bite into.
The downgrade stems from Jefferies’ “worrisome” assessment of The Trade Desk’s Q2 2025 report and Q3 outlook. The firm expressed doubts about the company’s ability to sustain its long-term revenue growth target of 20%+, citing limited upside to the stock’s valuation multiple.
The magnitude of the revenue growth deceleration in Q2, where growth slowed to 19% year-over-year from 25% in Q1, coupled with a Q3 revenue guidance of 14%+, proved particularly troubling for the analyst. This slowdown is especially concerning considering the generally robust performance reported by other advertising companies.
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Jefferies highlighted a lack of clarity regarding the causes of the slowdown and the absence of identifiable near-term catalysts to reignite growth. This uncertainty, combined with CEO Jeff Green’s recent warning about the negative impact of tariff-related uncertainties on major global advertisers, has fueled investor anxiety.
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