Trade Desk Shares Plunge After CEO Flags Tariff-Driven Pressure on Large Advertisers

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Trade Desk (TTD.O), the cloud-based advertising technology firm, faced its largest single-day stock drop on record Friday after CEO Jeff Green warned that ongoing tariff uncertainties are causing some of the world’s biggest advertisers to hold back on ad spending. The sharp decline threatened to erase nearly $16 billion from the company’s market value if losses hold.

Green highlighted that Trade Desk’s focus on large global advertisers makes it particularly vulnerable to economic pressures related to trade policies, contrasting with competitors that rely more on small and medium-sized businesses. The tariff-driven caution has led to a slowdown in launching new ad campaigns, especially in sectors most impacted by trade tensions.

Rosenblatt Securities analyst Barton Crockett noted that Trade Desk’s growth decelerated and underperformed Meta’s 22% growth, raising concerns that “closed gardens” like Meta’s platforms may be outpacing the open internet ad ecosystem that Trade Desk serves. Additionally, Trade Desk’s heavy exposure to large brands facing tariff pressures has added to investor concerns.

Despite the headwinds, the company projects current-quarter revenue of at least $717 million, roughly in line with analyst expectations. Still, at least 11 analysts have lowered their price targets on Trade Desk stock, bringing the median target down to $84.

Analysts at MoffettNathanson pointed out that as Trade Desk signs more brands to joint business plans, agencies might increasingly bring media buying in-house, posing another challenge.

On a leadership note, Trade Desk appointed Alex Kayyal as its new chief financial officer, effective August 21, succeeding Laura Schenkein.

Meta Partners with PIMCO and Blue Owl for $29 Billion Data Center Expansion in Louisiana

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Meta (META.O) has enlisted U.S. bond giant PIMCO and alternative asset manager Blue Owl Capital (OWL.N) to lead a $29 billion financing effort for its data center expansion project in rural Louisiana, according to a source familiar with the matter. PIMCO is expected to manage approximately $26 billion in debt financing, likely issued through bonds, while Blue Owl will contribute around $3 billion in equity.

Bloomberg News earlier reported that Meta had been working with Morgan Stanley (MS.N) on raising funds, with Apollo Global Management (APO.N) and KKR (KKR.N) also in contention to lead the financing until the final stages of negotiations. Meta, PIMCO, and Blue Owl declined to comment on the details.

This financing move supports Meta’s broader push to build AI infrastructure. Recently, the company disclosed plans to divest about $2 billion in data center assets as part of a co-development strategy to share construction costs for generative AI facilities. CEO Mark Zuckerberg has announced intentions to invest hundreds of billions into AI data centers, including the upcoming Prometheus and Hyperion centers—expected to come online in 2026 and scale to 5 gigawatts respectively.

The initiative underscores Meta’s aggressive investment in AI technology amid an ongoing talent war for engineers and competition in the AI sector.

SoftBank Acquires Foxconn’s Ohio EV Plant to Support Stargate AI Infrastructure Project

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SoftBank Group Corp (9984.T) is purchasing Foxconn Technology Group’s (2317.TW) electric vehicle manufacturing plant in Ohio to further its ambitious Stargate project aimed at building extensive AI data center infrastructure across the United States, Bloomberg News reported on Friday. The Stargate initiative, unveiled by U.S. President Donald Trump in January, represents a private sector investment potentially reaching $500 billion, with backing from SoftBank, OpenAI, and Oracle (ORCL.N).

SoftBank reportedly faced challenges in its financial planning for Stargate and sought Foxconn’s involvement to facilitate the development of data centers and related infrastructure, leading to the acquisition. The Ohio facility is expected to be repurposed as a data center site. Reuters could not independently confirm the report; SoftBank declined to comment, and Foxconn did not immediately respond.

The Stargate Project aims to generate over 100,000 jobs across the U.S., aligning with national goals to boost AI infrastructure and domestic technological capacity.