The Trade Desk (TTD) Fell Amid Strength in Broader Advertising Market

In its third-quarter 2025 capitalist letter, Baron Technology Fund highlighted stocks specified arsenic The Trade Desk, Inc. (NASDAQ:TTD). Headquartered successful Ventura, California, The Trade Desk, Inc. (NASDAQ:TTD) is simply a exertion institution that offers a self-service cloud-based ad-buying platform. The one-month instrumentality of The Trade Desk, Inc. (NASDAQ:TTD) was -14.73%, and its shares mislaid 67.03% of their worth implicit the past 52 weeks. On November 10, 2025, The Trade Desk, Inc. (NASDAQ:TTD) banal closed astatine $43.26 per share, with a marketplace capitalization of $20.92 billion.

Baron Technology Fund stated the pursuing regarding The Trade Desk, Inc. (NASDAQ:TTD) successful its 3rd 4th 2025 capitalist letter:

"The Trade Desk, Inc. (NASDAQ:TTD), a starring digital-advertising demand-side level (DSP), detracted from show this 4th aft reporting results and guidance that fell abbreviated of expectations. This frustrated investors amid spot successful the broader advertizing marketplace and pursuing beardown archetypal 4th results that exceeded some Baron and statement forecasts. We judge respective factors contributed to 2nd 4th gross maturation decelerating much than anticipated: (i) a slower-than-anticipated rollout of the company’s caller platform, Kokai (which has since re-accelerated); (ii) wide macro uncertainty astir tariffs that impacted larger marque advertisers, who look to person pulled-forward advertizing spending into the archetypal 4th successful beforehand of the administration’s April tariff rotation out; and (iii) the company’s restructuring of income and relationship coverage, peculiarly focused connected its largest clients. Importantly, our conversations with manufacture participants suggest that Amazon’s competing DSP has not yet taken meaningful stock from Trade Desk and that astir advertiser involvement successful Amazon appears constricted to its exclusive Prime Video inventory. That said, we are intimately monitoring Amazon’s propulsion to standard its offering by undercutting Trade Desk connected fees and signing caller publishing partners similar Roku, Netflix, and Spotify. Despite these issues, our probe supports our presumption that Trade Desk remains the merchandise person successful the DSP abstraction and is good positioned to payment from strengthening marque advertizing trends successful the 2nd fractional of 2025. Trade Desk nary longer commands a premium valuation, trading much successful enactment with peers and reflecting tempered maturation expectations. The institution remains financially stout, with implicit $1.7 cardinal successful currency connected its equilibrium sheet, beardown escaped currency travel generation, and the capableness to aggressively repurchase a important information of its marketplace cap. We proceed to clasp our presumption successful Trade Desk, portion keeping a adjacent oculus connected the evolving competitory landscape."