The Trade Desk, Inc. (TTD), headquartered in Ventura, California, operates as a technology company. Valued at $26.4 billion by market cap, the company offers a self-service cloud-based ad-buying platform that allows buyers to plan, manage, optimize, and measure data-driven digital advertising campaigns. The leading independent demand-side platform is expected to announce its fiscal third-quarter earnings for 2025 after the market closes on Thursday, Nov. 6.
Ahead of the event, analysts expect TTD to report a profit of $0.24 per share on a diluted basis, up 26.3% from $0.19 per share in the year-ago quarter. The company missed the consensus estimates in three of the last four quarters while beating the forecast on another occasion.
For the full year, analysts expect TTD to report EPS of $0.95, up 21.8% from $0.78 in fiscal 2024. Its EPS is expected to rise 35.8% year over year to $1.29 in fiscal 2026.
TTD stock has significantly underperformed the S&P 500 Index’s ($SPX) 14.5% gains over the past 52 weeks, with shares down 54.7% during this period. Similarly, it notably underperformed the Communication Services Select Sector SPDR ETF’s (XLC) 27.1% uptick over the same time frame.
TTD's underperformance can be attributed to the ongoing battle between its open-internet model and the Walled Garden model. The company's slower growth compared to Meta Platforms, Inc. (META)in Q2 suggests that its open-internet approach may be facing challenges, leading to increased uncertainty about its long-term viability.
On Aug. 7, TTD reported its Q2 results, and its shares tumbled 38.6% in the following trading session. Its adjusted EPS of $0.41 did not meet Wall Street expectations of $0.42. The company’s revenue was $694 million, beating Wall Street forecasts of $684.5 million. For Q3, TTD expects revenue to be $717 million.
Analysts’ consensus opinion on TTD stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 38 analysts covering the stock, 16 advise a “Strong Buy” rating, three suggest a “Moderate Buy,” 14 give a “Hold,” one recommends a “Moderate Sell,” and four advocate a “Strong Sell.” TTD’s average analyst price target is $69.12, indicating a potential upside of 28.3% from the current levels.
