Trade Desk Stock: Is TTD Underperforming the Communication Services Sector?

The Trade Desk, Inc. (TTD), headquartered in Ventura, California, operates as a technology company. Valued at $8.7 billion by market cap, the company offers a self-service cloud-based ad-buying platform that allows buyers to plan, manage, optimize, and measure data-driven digital advertising campaigns.

Companies worth $2 billion or more are generally described as “mid-cap stocks,” and TTD fits right into that category with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the advertising agencies industry. TTD’s robust platform and commitment to innovation drive market share growth in digital advertising, offering optimized ad impressions and superior client services.

Despite its notable strength, TTD slipped 79.8% from its 52-week high of $91.45, achieved on Aug. 7, 2025. Over the past three months, TTD stock has declined 21.4%, underperforming the State Street Communication Services Select Sector SPDR ETF’s (XLC) 3.7% dip during the same time frame. 

Shares of TTD fell 51.2% on a YTD basis and dipped 73% over the past 52 weeks, significantly underperforming XLC’s YTD losses of 7% and 5.8% returns over the last year.

To confirm the bearish trend, TTD has been trading below its 200-day moving average over the past year, with slight fluctuations. The stock has been trading below its 50-day moving average since early August, 2025, with minor fluctuations.

TTD underperformed as macro uncertainty and geopolitical tensions softened spend from CPG and auto advertisers. 

On May 7, TTD shares closed down more than 2% after reporting its Q1 results. Its adjusted EPS of $0.28 fell short of Wall Street expectations of $0.32. The company’s revenue was $688.9 million, topping Wall Street forecasts of $679.3 million. For Q2, TTD expects revenue to be $750 million.

In the competitive arena of advertising agencies, Magnite, Inc. (MGNI) has taken the lead over TTD, showing resilience with a 10.2% uptick on a YTD basis and 4.9% losses over the past 52 weeks.

Wall Street analysts are reasonably bullish on TTD’s prospects. The stock has a consensus “Moderate Buy” rating from the 38 analysts covering it, and the mean price target of $25.90 suggests an ambitious potential upside of 39.9% from current price levels.