The Trade Desk (TTD.US) was downgraded by Susquehanna, with its target price cut by nearly 60%. The stock price once plunged by about 26%.

Digital advertising technology company The Trade Desk (TTD.US) saw its stock price plunge significantly on Friday, with a decline that at one point reached approximately 26% after the market opened. This drop came after investment bank Susquehanna downgraded the company's rating from "Positive" to "Neutral" and sharply lowered its target price from $34 to $14, citing challenges in short-term execution, weak demand from advertisers, and pressure on growth prospects. The previous day, The Trade Desk announced second-quarter results that fell short of market expectations, causing its stock price to plummet by 23% during trading, ultimately closing down 6.8%. Susquehanna pointed out that the company's short-term operating environment remains challenging, with macroeconomic pressures, advertising pricing pressures, and execution issues continuing to impact future performance. According to the financial report, The Trade Desk's second-quarter revenue increased by only 3% year-on-year, which was below market expectations; adjusted EBITDA and earnings per share also did not meet analyst forecasts. The institution noted that amid the political uncertainties surrounding GEO Group Inc., weak consumer demand, and persistent inflationary pressures, the advertising spending demand from consumer goods and automotive industry clients has notably weakened, becoming a significant reason for the company's performance pressure. Susquehanna stated in its report, "The second-quarter performance was below expectations, and the company continues to face ongoing challenges." Additionally, it indicated that some advertisers are shifting to lower-cost advertising methods, further suppressing the company's growth performance. Despite downgrading the rating, Susquehanna did not deny The Trade Desk's long-term development prospects. The institution believes that connected TV will remain the company's most important growth engine, while other business directions such as retail media, international market expansion, artificial intelligence applications, and supply path optimization also still have significant growth potential. However, considering the recent downward adjustment in the valuation baseline and short-term fundamental pressures, Susquehanna has lowered the company's valuation assumptions and believes that the stock price will continue to be held down by slowing growth and execution risks in the short term.