The Trade Desk's stock crashes after weak earnings shock investors
The Trade Desk released its first-quarter financial results, revealing a slowdown in growth and weaker-than-expected earnings. The company’s stock fell sharply in after-hours trading, dropping to its lowest point in years. Investors reacted after revenue forecasts missed earlier market expectations.
The advertising technology firm reported revenue of $689 million for the quarter, up 12% from the same period last year. This growth rate lagged behind the previous quarter’s 14% increase and fell well short of the 25% rise seen in early 2023.
Earnings per share came in at $0.08 on a GAAP basis, below the $0.09 analysts had predicted. The figure also marked a decline from the $0.10 recorded in the year-ago quarter. Looking ahead, the company projected second-quarter revenue of at least $750 million, under the prior consensus estimate of $771 million. The disappointing results triggered a 15% plunge in the stock price during after-hours trading. Shares sank to $19.74, a multi-year low. Analysts now watch whether the $19.74 level holds, as a break below could push the price toward the next support near $17.75. A recovery above the recently breached downtrend line at $21.65 would signal a potential turnaround. However, if both thresholds fail, the decline might extend further, possibly reaching the 2020 low of $13.60. Prices around $20 are anticipated at the market open, placing the $19.74 low under immediate pressure.
The Trade Desk’s latest earnings report highlights softer revenue growth and a weaker outlook than expected. With shares trading near multi-year lows, the next few sessions will determine whether the stock stabilises or faces further declines. Market attention now focuses on whether key support levels can hold.
