TTD Downgraded to Underperform
Raymond James downgrades TTD due to weak 2Q and 3Q outlook
TTD Raymond James Downgrades TTD to Underperform Analyst comments: "We downgrade shares of The Trade Desk following a below-expectations 2Q and a sharply negative 3Q outlook, as macro conditions and buyers showing preferences for lower-cost media drove down spend on the TTD platform.
The company guided to its first-ever non-pandemic year-over-year revenue decline despite potential benefits from political spend.
For the next few quarters, what TTD can control appears far overshadowed by forces beyond its reach, and we see a difficult road back to growth.
Even if growth materializes, margins are a new concern as the top line softens further.
Given the outlook for sustained revenue declines and margin deleverage, we have a hard time justifying TTD's valuation premium to the adtech peer group." Analyst: Aaron Kessler