Trade Desk pares gains to 21%, had been up as much as 31%
TL;DR
The Trade Desk stock pared gains to 21% after surging 31% on a partnership announcement, with strong Q4 2025 results but weaker Q1 2026 guidance. Revenue growth remains solid, though analysts project a slowdown amid competitive pressures.
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Trade Desk pares gains to 21%, had been up as much as 31%
The Trade Desk (NASDAQ:TTD) shares pared gains to 21% as of March 5, 2026, after surging as high as 31% earlier in the session, driven by a strategic partnership announcement that enhanced its advertising capabilities. The stock's performance contrasted with a 0.37% decline in the S&P 500, reflecting its resilience amid broader market weakness.
The company reported Q4 2025 revenue of $846.8 million, exceeding analyst estimates by 0.6% and marking a 14.3% year-over-year increase. Non-GAAP earnings per share (EPS) of $0.59 aligned with expectations, while adjusted EBITDA reached $400.3 million, a 6.4% beat. However, Q1 2026 revenue guidance of $678 million fell 1.5% below estimates, and EBITDA guidance of $195 million (midpoint) lagged analyst projections of $222.4 million.
Despite the near-term guidance shortfall, The Trade Desk's full-year 2025 revenue grew 28.2% compound annually over five years, reflecting sustained demand for its advertising platform. Analysts project 15.6% revenue growth over the next 12 months, though this represents a deceleration from prior years. The stock's market capitalization currently stands at $14.9 billion, with a price-to-sales ratio of 4.29.
While the partnership-driven rally highlighted investor optimism, mixed guidance and competitive pressures in the advertising technology sector underscore ongoing challenges for the company. Analysts have set a wide range of price targets, averaging $32.95, reflecting divergent views on its near-term trajectory.
