Trade Desk Opens Direct Xumo Inventory Path as Shares Fall 60% in 12 Months
The Trade Desk trades at a reasonable valuation despite slowing growth and is forecast to rebound in 2026, earning a no-brainer buy recommendation. Shares have dropped over 60% in 12 months after management instability and high multiples, while OpenPath grants direct access to Xumo’s premium streaming inventory.
1. Stock Performance and Investor Sentiment
Over the past 12 months, The Trade Desk has seen its share price decline by more than 60%, reflecting mounting investor concerns over slowing revenue growth and broader economic uncertainty in the adtech sector. While one analysis highlights the stock as a “no-brainer” buy for investors allocating $5,000—citing a reasonable valuation and positioning for a potential rebound in 2026—another cautions against buying the dip, pointing to management instability following recent executive departures and high valuation multiples relative to peers despite the decline.
2. Platform Expansion with Xumo OpenPath
In a significant operational development, Xumo announced that advertisers can now access its premium streaming inventory directly through The Trade Desk’s OpenPath supply path. This integration, live across major DSPs, is expected to boost TTD’s addressable market in connected TV by an estimated 15% over the next year and deepen its footprint among CTV buyers seeking transparent, premium video placements.
3. Growth Outlook and Valuation Considerations
Analysts forecast The Trade Desk’s revenue growth to slow to mid-teens percentages this fiscal year, down from CAGR rates above 20% in prior periods. Despite this deceleration, bulls argue the platform’s AI-driven bidding algorithms and expanding partnerships position it for renewed acceleration in 2026. Bears counter that at current multiples—still above 10x forward revenue—the risk remains elevated until the company demonstrates a clear turnaround in margin expansion and stabilizes its leadership team.