Trade Desk Stock Sinks After Q2 Print, But Retail Traders Back AdTech Platform Company To The Hilt

Trade Desk, Inc. (TTD) shares tumbled over 28% in overnight hours after the ad-tech platform reported a slowdown in second-quarter revenue growth and issued a soft third-quarter forecast.

If this loss carries over to the regular session, the stock would record its biggest one-day drop in six months.

On Stocktwits, Trade Desk stock featured among the top five trending tickers and the top 10 most active tickers by late Thursday.

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Retail traders pledged allegiance to the stock despite the post-earnings slump. Sentiment toward the stock turned to ‘extremely bullish’ (94/100) by late Thursday from ‘bullish’ a day ago. The message volume also increased to ‘extremely high’ levels.

The 24-hour message volume change for the period ending late Thursday was about 1,750%.

Following the Los Angeles-based company’s second-quarter earnings for the fiscal year 2025, co-founder and CEO Jeff Green said, “Q2 was a strong quarter for The Trade Desk, with revenue growing to $694 million, up 19% year-over-year, as we continue to outpace the digital advertising market.”

The revenue growth, however, slowed from the 25% pace in the first quarter.

Green said the company’s Kokai, a media-buying platform that incorporates artificial intelligence (AI) technology, helped advertisers drive better results by “integrating more data into every decision, using AI as a co-pilot, and unlocking the full potential of first-party data.”

Trade Desk’s adjusted earnings per share (EPS) rose year-over-year (YoY) to $0.41 from $0.39, aligning with the Fiscal.ai-compiled consensus.

The second-quarter revenue exceeded the $686.03 consensus estimate.

Looking ahead, the company guided to revenue of at least $717 million and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of about $277 million. The revenue outlook was slightly shy of the consensus estimate of $717.33 million.

A watcher on the Stocktwits platform was perplexed by the after-hours move but suggested that they were bullish. 

Another user said the stock would bounce back up to mid-70 levels before the market opens on Friday, as they hoped for support from bulls.

Trade Desk stock is down about 25% this year, and the Koyfin-compiled average analysts’ price target ($90.58) implies merely a 2.5% upside from current levels.

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