10 Worst Performing Software Stocks to Buy According to Analysts

3. The Trade Desk Inc. (NASDAQ:TTD)

YTD returns: -40%

Potential Upside: 64%

Number of Hedge Fund Holders: 63

The Trade Desk Inc. (NASDAQ:TTD) operates a cloud-based ad-buying platform that enables advertisers to plan, manage, optimize, and measure digital marketing campaigns across multiple channels, including video, display, audio, digital-out-of-home, and social media. The company serves advertising agencies, advertisers, and other service providers within the ad industry.

Like many other stocks, The Trade Desk Inc. (NASDAQ:TTD) faced a steep decline after its quarterly earnings report on February 12, with shares plunging 33% in a single day. The company reported Q4 2024 revenue of $741 million, reflecting 22% year-over-year growth but falling short of its guidance of at least $756 million. Management expressed disappointment over execution missteps that led to the shortfall. For Q1 2025, the company projected 17% revenue growth, signaling a slowdown compared to 22% in the previous quarter and 28% in Q1 2023. As of February 28, the stock had declined 40% year-to-date.

Despite recent challenges, The Trade Desk Inc. (NASDAQ:TTD) remains well-positioned to benefit from the ongoing shift toward digital advertising, as brands continue reallocating budgets away from traditional media. On February 20, Loop Capital analyst Rob Sanderson cut his price target from $145 to $101, citing weak Q4 results and the stock’s valuation reset. However, he maintained his Buy rating, believing the company’s long-term growth story remains intact and that its current estimates may prove conservative.