Why I'm Still Not Buying The Trade Desk Stock After a 90% Drop
The stock trades near $14. The problem is what the business is guiding toward.
Overview
The Trade Desk (NASDAQ:TTD) is getting smaller. Earlier this month, the advertising technology company said it will cut about 15% of its workforce, a reduction it expects to substantially complete this quarter.
The announcement came about a month after management guided for third-quarter revenue of at least $650 million -- down about 12% from the $739 million the company generated in the same quarter last year.
Details
The stock, meanwhile, trades around $14 as of this writing, about 90% below the record it set in December 2024. The slide runs deep enough that Monday's quarterly index rebalance moves the stock out of the S&P 500 and down to the S&P SmallCap 600. A decline that steep can pull in bargain hunters, and I understand the temptation. After all, the company holds about $1.5 billion in cash and short-term investments, and its customers keep renewing.
Source
Originally published at www.fool.com.