"From its IPO in 2016 to its peak in late 2024, the stock gained more than 4,000% as it regularly put up revenue growth of 20% or more, and delivered strong profit margins as well. The stock also benefited from a premium valuation. However, over the last year, The Trade Desk has collapsed. The adtech stock has fallen 83% from its peak in late 2024 as the business has slowed to its weakest growth rate ever, except for a brief dip during the pandemic."
"The Trade Desk's revenue has now fallen for three straight quarters, and management expects revenue to slow again in the current quarter, calling for at least $678 million in revenue in the first quarter, which would be just 10% growth."
"In fact, The Trade Desk's slowdown began right when Amazon announced a new demand-side platform (DSP) experience that offers improved usability, reducing campaign setup time by 75%, and better full-funnel optimization. Since then, it seems like Amazon has gained market share on The Trade Desk in areas like retail media and Connected TV, and it's clear why. Amazon has a unique reach in advertising."
The Trade Desk, once a top-performing stock with over 4,000% gains since its 2016 IPO, has experienced severe decline. Revenue growth has slowed to its weakest rate ever outside the pandemic period, with revenue falling for three consecutive quarters. Management projects only 10% growth for the upcoming quarter. The company's troubles stem primarily from increased competition rather than execution issues or macroeconomic factors. Amazon's new demand-side platform, which reduces campaign setup time by 75%, has captured market share in retail media and Connected TV advertising. Amazon's competitive advantages include unmatched customer shopping data from hundreds of millions of e-commerce customers and access to over 200 million Prime subscribers for streaming advertising.
Read at The Motley Fool
Unable to calculate read time
Collection
[
|
...
]