Jefferies Downgrades The Trade Desk (TTD) on Revenue Slowdown and Competition Concerns

The Trade Desk, Inc. (NASDAQ:TTD) is one of the best falling stocks to buy now. On August 11, Jefferies downgraded The Trade Desk shares from a “Buy” rating to “Hold” and cut its price target from $95 to $50. Jefferies cited a sharper-than-expected slowdown in revenue growth.

An executive in suit presenting a large touch screen of the company’s cloud-based enterprise platform.

On August 7, The Trade Desk reported its Q2 2025 earnings, where revenue came in at $694 million. This is a 19% year-over-year increase, but down 25% compared to the previous quarter, and below the expected 22% growth rate.

Jefferies noted that The Trade Desk faces increased competition, particularly from Amazon (NASDAQ:AMZN), which secured content deals with Roku (NASDAQ:ROKU) and Walt Disney (NYSE:DIS). The analysts pointed to this fact as one of the factors contributing to The Trade Desk’s slowdown in Q2 2025. The firm cited additional pressures, including advertisers shifting budgets to the first quarter to avoid tariff-related uncertainty, senior management changes, a major company reorganization, and a slower-than-expected rollout of The Trade Desk’s new Kokai platform.

Jefferies described The Trade Desk’s third-quarter revenue forecast of “at least 14% growth” as weak, especially compared to solid results from other advertising firms. Accordingly, the firm reduced its adjusted EBITDA estimates for 2025 and 2026 by 1% and 6%, respectively.

The Trade Desk, Inc. (NASDAQ:TTD) is an American technology company. It provides a cloud-based, self-service platform that enables advertisers to plan, buy, and optimize digital ad campaigns across various channels, including connected TV (CTV), display, audio, and mobile.

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Disclosure: None. This article is originally published at Insider Monkey.