The Trade Desk Shares Surge 18% on OpenAI Partnership, Wedbush Downgrades Stock
On March 5 The Trade Desk shares climbed 18.36% to close at $29.79 following a partnership to sell ads on ChatGPT. Wedbush downgraded the stock from Neutral to Underperform while maintaining a $23 price target, highlighting DSP dilution and disintermediation risks.
1. OpenAI Partnership Drives Fourth Day of Gains
On March 5 The Trade Desk announced a strategic collaboration to sell ads on ChatGPT, triggering an 18.36% share price jump to $29.79 and extending a four-day winning streak as investors bet on incremental AI ad revenue.
2. Wedbush Downgrade Cites Overexuberance and Platform Risks
Wedbush lowered its rating from Neutral to Underperform and kept a $23 price target, warning that investors are overestimating short-term value and pointing to potential dilution in its demand-side platform and risks of disintermediation.
3. Strong 2025 Results but Trimmed Q1 Guidance
The Trade Desk reported Q4 revenue up 14% to $847 million and full-year revenue of $2.90 billion, with GAAP net income of $443.3 million; it authorized a $500 million buyback but cut Q1 2026 revenue growth guidance from 14% to 10%.
4. CEO Share Purchase Signals Confidence Amid Long-Term Risks
Chief executive Jeff Green acquired 6 million shares worth about $148 million, signaling confidence in growth, although there’s a lingering risk that AI platforms like ChatGPT could internalize ad operations over time.