Trade Desk NASDAQ:TTD fell 4.08% intraday after Arete downgraded the advertising technology company to Sell from Neutral, setting a price target of $11.60. The stock closed Monday at $18.65, implying roughly 38% downside from current levels.
Analyst Richard Kramer pointed to a few overlapping problems. Competitors increasingly see Trade Desk as vulnerable to share loss, which puts fiscal 2027 sales at risk of coming in materially lower. The company has new products in the pipeline, but it's also fielding pushback from agencies and marketers who want more transparency, and it's shifting toward a more capital-intensive business model at the same time.
The downgrade extends a difficult stretch for the stock, which is down 51% year to date and 74% over the past twelve months.