The Trade Desk (NASDAQ: TTD) is a technology company that provides a platform for ad buyers. It allows clients to create, manage, and optimize digital advertising campaigns across various formats and devices. In the competitive ad-tech space, TTD's performance is often compared to rivals like AppLovin (NASDAQ: APP), whose results can show different trends within the industry.
On May 8, 2026, investment firm Needham lowered its price target on TTD to $25. This decision followed the company's mixed first-quarter financial results. While TTD reported revenue of nearly $689 million, which was higher than the expected $679.20 million, its performance in other areas fell short of expectations.
The company's adjusted earnings per share, a measure of its profitability, was $0.28, missing the analyst consensus estimate of $0.32. Furthermore, as highlighted by Finbold, its GAAP net income, which is the profit after all expenses are accounted for, declined to $40 million from $51 million in the same quarter last year.
Investor concern grew after TTD issued its guidance for the upcoming second quarter. Management's revenue forecast of at least $750 million was approximately $22.4 million below what Wall Street analysts were expecting. This weaker-than-expected outlook prompted Needham to reduce its price target on the stock from $32 to $25.
Following the news, shares of TTD dropped significantly, falling around 13% to $20.41, as noted by 24/7 Wall St. At the time of Needham's update, the stock was trading at $22.04. This contrasts with competitor AppLovin, which saw its stock price increase by 6% after reporting strong results.
