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.

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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