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