Trade Desk (NASDAQ:TTD) Shares Gap Down on Disappointing Earnings

Key Points

• Big EPS miss: The Trade Desk reported non‑GAAP EPS of $0.08 versus $0.32 expected, triggering a premarket gap down from $23.49 to $20.98 and heavy volume.
• Revenue beat and buyback: Q1 revenue came in at $688.9M, up ~11.8% year‑over‑year and slightly above estimates, and the board approved a $350M share repurchase (≈2.9% of outstanding shares).
• Weaker guidance drove analyst cuts: Softer near‑term guidance prompted price‑target reductions and mixed analyst ratings, amplifying the selloff despite management's upbeat long‑term comments.

The Trade Desk (NASDAQ:TTD - Get Free Report)'s share price gapped down before the market opened on Friday following a weaker than expected earnings announcement. The stock had previously closed at $23.49, but opened at $20.98. Trade Desk shares last traded at $21.8530, with a volume of 11,062,627 shares trading hands.

The technology company reported $0.08 EPS for the quarter, missing the consensus estimate of $0.32 by ($0.24). The company had revenue of $688.86 million for the quarter, compared to analysts' expectations of $678.87 million. Trade Desk had a return on equity of 16.89% and a net margin of 15.31%.Trade Desk's revenue for the quarter was up 11.8% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.33 earnings per share.

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Trade Desk announced that its Board of Directors has approved a stock repurchase program on Wednesday, February 25th that authorizes the company to buyback $350.00 million in outstanding shares. This buyback authorization authorizes the technology company to purchase up to 2.9% of its stock through open market purchases. Stock buyback programs are generally a sign that the company's board believes its shares are undervalued.

Trending Headlines about Trade Desk

Here are the key news stories impacting Trade Desk this week:

• Positive Sentiment: Revenue beat and continued growth: Q1 revenue was $688.9M, up ~11.8% year‑over‑year and slightly above the consensus revenue estimate — a sign demand held up better than feared. Trade Desk Reports First Quarter 2026 Financial Results
• Neutral Sentiment: Corporate governance: shareholders approved directors and other governance matters at the annual meeting — removes an immediate governance overhang but is unlikely to move the stock materially by itself. Trade Desk Stockholders Approve Directors and Governance Matters
• Neutral Sentiment: Management tone: CEO reiterated long‑term confidence ("best days are ahead"), which can steady sentiment but doesn’t erase the near‑term miss and guidance concerns. TTD stock sinks overnight on weak outlook, but CEO feels 'best days are ahead'
• Negative Sentiment: Big earnings miss on the bottom line: non‑GAAP EPS materially missed consensus (company reported ~$0.08 vs. ~$0.32 expected), which directly pressured the share price. The Trade Desk Q1 Earnings Report and Transcript
• Negative Sentiment: Weaker near‑term guidance: Q2 revenue guidance (~$750M floor) and commentary came in below some Street expectations, amplifying concerns about growth momentum and prompting selling. Trade Desk Posts Better‑Than‑Expected Sales In Q1 CY2026 But Stock Drops 15%
• Negative Sentiment: Analyst price‑target cuts and mixed ratings: Needham cut its target to $25 (still a buy) and Rosenblatt cut to $24 (neutral); these trims reflect reduced near‑term confidence and remove some upside from sell‑side support. Benzinga coverage of analyst price‑target changes
• Negative Sentiment: Market reaction and structural concerns: the stock sold off heavily in premarket/after‑hours trading after the print; investors remain worried about agency‑client uncertainty and recent leadership/finance changes that could constrain growth. Trade Desk stock falls as mixed earnings trigger price target cuts

Analyst Ratings Changes

Several equities research analysts recently commented on the stock. Truist Financial decreased their price objective on shares of Trade Desk from $60.00 to $50.00 and set a "buy" rating on the stock in a research report on Thursday, February 26th. UBS Group set a $31.00 price target on shares of Trade Desk and gave the company a "buy" rating in a report on Tuesday, April 21st. Piper Sandler reiterated a "neutral" rating and issued a $28.00 price target (down from $50.00) on shares of Trade Desk in a research report on Monday, March 2nd. Loop Capital cut shares of Trade Desk from a "buy" rating to a "hold" rating and dropped their price objective for the stock from $75.00 to $25.00 in a research note on Thursday, February 26th. Finally, Evercore restated an "outperform" rating on shares of Trade Desk in a research report on Monday, February 23rd. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, twenty-one have given a Hold rating and four have given a Sell rating to the company's stock. Based on data from MarketBeat, Trade Desk currently has an average rating of "Hold" and an average target price of $40.15.

Insider Activity

In other news, Director Kathryn E. Falberg sold 50,000 shares of Trade Desk stock in a transaction dated Thursday, March 5th. The shares were sold at an average price of $30.48, for a total transaction of $1,524,000.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 11.41% of the stock is owned by corporate insiders.

Institutional Trading of Trade Desk

A number of hedge funds have recently bought and sold shares of TTD. Brighton Jones LLC boosted its holdings in shares of Trade Desk by 3.8% during the fourth quarter. Brighton Jones LLC now owns 4,586 shares of the technology company's stock worth $539,000 after purchasing an additional 169 shares during the last quarter. Tidemark LLC lifted its position in Trade Desk by 35.1% during the third quarter. Tidemark LLC now owns 943 shares of the technology company's stock worth $46,000 after buying an additional 245 shares during the period. Cornerstone Wealth Group LLC boosted its stake in Trade Desk by 5.8% in the 3rd quarter. Cornerstone Wealth Group LLC now owns 4,714 shares of the technology company's stock worth $231,000 after buying an additional 257 shares during the last quarter. Whittier Trust Co. boosted its stake in Trade Desk by 13.5% in the 3rd quarter. Whittier Trust Co. now owns 2,172 shares of the technology company's stock worth $112,000 after buying an additional 258 shares during the last quarter. Finally, Howard Capital Management Inc. grew its holdings in Trade Desk by 2.3% in the 4th quarter. Howard Capital Management Inc. now owns 12,150 shares of the technology company's stock valued at $461,000 after buying an additional 275 shares during the period. Institutional investors and hedge funds own 67.77% of the company's stock.

Trade Desk Stock Performance

The firm has a fifty day simple moving average of $23.73 and a 200 day simple moving average of $32.86. The company has a market cap of $10.41 billion, a PE ratio of 24.33, a PEG ratio of 0.96 and a beta of 1.10.

Trade Desk Company Profile

The Trade Desk, Inc NASDAQ: TTD is a technology company that provides a demand-side platform (DSP) for programmatic digital advertising. Its platform enables advertisers, agencies and other buyers to plan, purchase and measure ad inventory across digital channels, including display, video, mobile, audio, native and connected TV. By centralizing real‑time bidding, audience targeting and inventory access, the company aims to help clients optimize media spend and reach audiences at scale across publishers and ad exchanges.

Founded in 2009 by Jeff Green and Dave Pickles, The Trade Desk grew from a focus on programmatic display into a global ad‑tech provider.

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