With a $10 billion market cap, The Trade Desk, Inc. (TTD) is a prominent advertising technology company that operates a cloud-based demand-side platform (DSP) used by advertisers and advertising agencies to buy digital advertising inventory across various channels. Headquartered in Ventura, California, the company specializes in programmatic advertising, enabling marketers to use data and automation to purchase targeted digital ads in real time.
Shares of TTD have considerably underperformed the broader market over the past year. TTD has declined 71.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 27.4%. In 2026, TTD’s stock plummeted 43.9%, compared to the SPX’s 8.8% YTD rise.
Narrowing the focus, TTD has also lagged behind the Invesco AI and Next Gen Software ETF (IGPT). The exchange-traded fund has gained 102.8% over the past year and 53.1% this year.
On May 18, shares of TTD rose 3.9% as investor sentiment toward software and ad-tech stocks improved amid easing concerns about AI disrupting traditional SaaS businesses. The rebound followed a prolonged period of weakness across the software sector during the so-called “SaaS Rout of 2026,” when investors feared artificial intelligence could significantly displace existing software platforms. However, market sentiment shifted as investors increasingly recognized that established companies like The Trade Desk possess strong competitive advantages, including deep enterprise relationships, proprietary data assets, and embedded customer workflows.
For FY2026 that ends in December, analysts expect TTD’s EPS to grow 30% to $1.17 on a diluted basis. However, the company’s earnings surprise history is grim. It missed the consensus estimate in three of the last four quarters while beating the forecast on another occasion.
Among the 38 analysts covering TTD stock, the consensus is a “Moderate Buy.” That’s based on 11 “Strong Buy” ratings, two “Moderate Buys,” 23 “Holds,” one “Moderate Sell,” and one “Strong Sell.”
The configuration is bearish compared with a month ago, when the stock had 14 “Strong Buy” recommendations.
On May 11, DA Davidson analyst Tom White reiterated a “Buy” rating on The Trade Desk while lowering the firm’s price target to $29 from $32.
The mean price target of $26.13 represents a 22.8% premium to TTD’s current price levels. The Street-high price target of $40 suggests an ambitious upside potential of 88%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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