The Trade Desk Shares Rise Above Analyst Target Amid Cost-Cutting Measures
On September 18, shares of The Trade Desk (TTD) closed at $13.92, trading above the current average analyst target price of around $13.60 for the first time in months. Guggenheim raised its target to $13 from $12 following recent cost-cutting measures by TTD, including layoffs that are expected to save about $150 million annually and boost 2027 EBITDA estimates by roughly 23%. Despite this positive analyst move, the overall market sentiment remains subdued as Street targets have steadily declined over the past year from above $86 in mid-2025 to near current levels. The downward revision of expectations began after TTD's Q2 results on August 6 fell short. Revenue grew only 3% YoY at $715 million, missing estimates and signaling a potential contraction for the third quarter. CEO Jeff Green acknowledged poor execution and macroeconomic pressures in key sectors like consumer-packaged goods and automotive advertising. The company has since announced layoffs of about 15%, impacting around 575 roles. New CFO Nate Olmstead emphasized disciplined spending on areas with attractive returns, while TTD's gross margin remains strong at 77%. Despite trading near 8.8x forward EV/EBITDA—higher than peers like DoubleVerify and Magnite—the company’s financial health is seen as better in terms of margins and balance sheet strength.
Topics: analyst targets cost cuts The Trade Desk TTD stock price