Latest News

Trade Desk stock shoots more than 13% higher as ad-tech powerhouse’s sales, forecast top expectations


Trade Desk Inc. reported stronger-than-expected sales and guidance Tuesday amid doubts about the online-advertising industry, sending shares more than 13% higher in extended trading.

Trade Desk

reported a second-quarter loss of $19.1 million, or 4 cents a share, on sales of $377 million, up from $280 million a year ago. After adjusting for stock-based compensation and other effects, the online-advertising powerhouse reported earnings of 20 cents a share.

Analysts on average expected adjusted earnings of 20 cents a share on sales of $365 million, according to FactSet. Shares jumped to more than $61 in after-hours trading immediately following the release of the results, after closing with a 0.9% decline at $54.50.

Trade Desk has been under pressure amid a perceived slowdown in online-ad spending, which showed up in the earnings of big online-ad players like Facebook parent Meta Platforms Inc.

and important Trade Desk clients like Roku Inc.
Many of those fears have been supported by forecasts from those companies calling for a deceleration in ad spending as companies cut back amid fears of an economic recession.

“We believe the industry has entered into a modest ad recession, where the combination of tighter budgets, less time spent online, and inflation and FX headwinds is creating elevated pressure on companies,” KBCM analysts wrote in a preview of reports from Trade Desk and other ad-tech companies.

Trade Desk executives guided for third-quarter revenue of at least $385 million, while analysts on average were expecting $382 million, according to FactSet. Chief Executive Jeff Green said in a statement that his company’s performance “gives us confidence that we will continue to gain market share in any market environment.”

“We delivered outstanding performance in the second quarter, growing 35% versus a year ago, significantly outpacing worldwide programmatic advertising growth,” he said.

Trade Desk shares have declined more than 40% so far this year, as the S&P 500 index

has dropped 13.1%.

Don’t be fooled by a drop in U.S. headline inflation. Markets will be attuned to another figure on Wednesday.

Previous article

Larry Summers is ‘appalled’ by the private equity carve outs in the Inflation Reduction Act

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News