Citigroup lowered its rating on The Trade Desk from Outperform to Market Perform following a 70% decline in the stock over the past 12 months and successive revenue‐shortfall quarters. The shares recently hit multi‐year lows not seen since mid-2020, eroding Wall Street enthusiasm and prompting concerns over the company’s near-term momentum. Despite the downgrade, trading volume remains robust—averaging over 8 million shares daily—underscoring continued investor interest even as sentiment turns cautious.

Analysts anticipate the upcoming Q4 report will show revenue of approximately $841 million, up from $749 million a year earlier, while earnings per share are expected to decline to $0.34 from $0.59. In the first nine months of 2025, The Trade Desk generated $2.05 billion in revenue, a 20% year-over-year increase, and delivered $256 million in net income, a 22% rise, supported by a customer retention rate above 95%. Gross margin has held steady near 79%, but rising tax expenses—up 74% year-to-date—remain a headwind to bottom-line expansion.

The Trade Desk faces mounting pressure from platform owners like Google and Amazon, which restrict third-party access and leverage proprietary sales data. Simultaneously, the rise of AI-driven search threatens traditional ad placements by connecting consumers directly with products. In response, the company has accelerated its shift into connected TV, where ad spend growth outpaces overall markets, and is expanding internationally—now accounting for 13% of total revenue. Management also bolstered its share‐repurchase authorization by $500 million, signaling confidence that current valuations understate long-term prospects.