Why The Trade Desk (TTD) Crashed Last Week?

We recently published a list of These Were Last Week’s 10 Worst Performers. In this article, we are going to take a look at where The Trade Desk, Inc. (NASDAQ:TTD) stands against other last week’s worst performers.

Ten companies posted double-digit declines last week amid a series of dismal earnings performance and outlook guidance that weighed down on investor sentiment, bucking an overall strength of Wall Street’s main indices on a week’s basis.

Over the past five trading days, the Dow Jones registered growth of 0.5 percent, the S&P 500 increased by 1.47 percent, and the tech-heavy Nasdaq rallied by 2.57 percent.

To come up with the list, we only considered the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A large array of computer screens and tech equipment representing the technology company’s self-service cloud-based platform.

The Trade Desk Inc. (NASDAQ:TTD)

The Trade Desk, Inc. (NASDAQ:TTD) dropped its share prices by 31.6 percent week-on-week, finishing Friday at $80.16 apiece versus the $117.29 registered on February 7.

The drop followed a downgraded outlook from an analyst from Evercore ISI, cutting his rating to “hold” from “buy” previously due to mixed financial results and underperformance in key areas. Additionally, the analyst cut his price target for the company by 33 percent to $90 from $135 previously.

The downgrade came after The Trade Desk (NASDAQ:TTD) missed internal revenue expectations for the first time in eight years, with figures settling at $741 million, or lower than analyst consensus of $758 million and internal guidance of $756 million.

In a statement, TTD CEO Jeff Green acknowledged the company’s performance in 2024, but said that he was disappointed “for falling short of our expectations in the fourth quarter.”

“In 2025 and beyond, we are uniquely positioned to help our clients take full advantage of data-driven advertising on the premium internet, helping them drive growth and brand loyalty for their businesses,” he said.

Overall, TTD ranks 2nd on our list of last week’s worst performers. While we acknowledge the potential of TTD as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TTD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article is originally published at Insider Monkey.