Guggenheim lowered its price target on The Trade Desk (NASDAQ: TTD) to $55.00 from $75.00 but maintained a Buy rating, citing competitive headwinds and near-term uncertainty.
The firm said investor focus remained on macroeconomic conditions, competitive pressures—particularly from Amazon’s demand-side platform—and adoption of The Trade Desk’s Kokai platform. Management is targeting 100% Kokai adoption by year-end, up from more than 70% in the second quarter.
Advertising demand trends were consistent with late second-quarter levels, though consumer packaged goods and auto brands continued to face tariff-related pressures. Analysts said the narrative of Amazon gaining DSP market share could weigh on sentiment until The Trade Desk demonstrates revenue reacceleration, which they expect to begin in the second quarter of 2026.
Looking ahead, Guggenheim forecast growth driven by connected TV adoption, political advertising in 2026, and audio monetization. The firm called 2025 a transition year, underpinned by Kokai rollout, headcount expansion, and new leadership hires.
