The Trade Desk: Solid Results, Rough Landing – why the Stock has Plummeted

Investors had hoped the Q2 update from The Trade Desk would signal the start of a new growth phase. What they got were solid results – and a forecast that sounds rather cautious. In a market that has priced in high expectations, this was enough for an after-hours drop of approximately 25%.  In the second quarter, revenue climbed by 19% to $694 million, with adjusted EBITDA at $271 million – an impressive margin of 39%. Growth drivers remained Connected TV (CTV) and Retail Media, while display and audio advertising played only supporting roles. ...