Shares of The Trade Desk Inc (NASDAQ:TTD) traded lower on Monday after HSBC and DA Davidson downgraded their ratings on the stock. The Nasdaq is down 0.10% while the S&P 500 has gained 0.05%, and TTD is sliding even as the Communication Services sector is essentially flat at a 0.02% dip.
DA Davidson downgraded Trade Desk to Neutral and lowered its price forecast to $16. HSBC downgraded the stock to Reduce and set a $10 price forecast.
Second-Quarter Earnings and Revenue Miss
On Thursday, the company reported second-quarter earnings of 34 cents per share, missing the consensus estimate of 40 cents. Second-quarter revenue came in at $715.06 million versus the $751.39 million expected.
Customer retention stayed above 95%. CEO Jeff Green reiterated Trade Desk’s focus on decisioning, measurement, and AI.
TTD Chart Remains Firmly Bearish
The company expects third-quarter revenue to exceed $650 million, below the analyst estimate of $805.09 million. The stock fell more than 24% in extended trading following the release.
The movement extends a broader decline, with the stock down 80% over the past year.
TTD is trading 27.6% below its 20-day SMA ($17.89), 30.9% below its 50-day SMA ($18.76), and 54.1% below its 200-day SMA ($28.25), which keeps the path of least resistance pointed down. The 20-day SMA sitting below the 50-day SMA, and the 50-day SMA below the 200-day SMA, reinforces that sellers still control both the intermediate and long-term trend.
Momentum is extremely stretched, with RSI at 26.28—an oversold reading that often signals the selling has become crowded and may be due for a bounce or at least a pause.
- Key Resistance: $17.89 — aligns with the 20-day SMA, a level that often acts as the first "sell zone" in downtrends
- Key Support: $12.83 — the 52-week low area being tested, where buyers may attempt a reflex bounce
TTD Stock Price Activity: Trade Desk shares were down 6.91% at $12.85 at the time of publication on Monday, according to Benzinga Pro data.
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