Trade Desk (TTD) Drops 11.9% on PT, Rating Downgrade

We recently published 10 Stocks Melt Down in Hours. The Trade Desk, Inc. (NASDAQ:TTD) is one of the worst performers on Wednesday.

The Trade Desk fell by 11.95 percent on Wednesday to end at $46.14 apiece as investors took path from an investment firm’s downgrade of its stock.

In a market note, Morgan Stanley downgraded The Trade Desk, Inc. (NASDAQ:TTD) to “equalweight” from “overweight” previously and lowered its price target to $50 from $80.

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According to Morgan Stanley, the revision was based on growing concerns about the company’s connected TV business, saying that they have been wrong about the durability of its growth amid execution concerns, softness in the open web ad market, and intensifying competition.

“TTD’s weaker-than-expected 3Q guidance of 14 percent revenue growth has reignited questions that first emerged with its 4Q:24 miss and implies continued challenges ahead,” the investment firm said.

Morgan Stanley also pointed to factors such as the increasing pushback from advertisers, as well as Amazon’s faster-than-expected advertising platform expansion, among others, having teamed up recently with Roku and Disney.

“Fundamental uncertainties, tough compares into ’26, and open web headwinds lead us to see limited upside and a more balanced risk reward from here,” the research firm said.

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