Morgan Stanley Downgrades The Trade Desk (TTD) to Equalweight

Morgan Stanley analyst Matthew Cost downgraded The Trade Desk (NASDAQ: TTD) from Overweight to Equalweight with a price target of $50.00 (from $80.00).

The analyst comments: "We have been wrong about the durability of TTD's growth in the face of lingering execution concerns, softness in the open web ad market, and intensifying competition in CTV. TTD's weaker than expected 3Q guidance of 14% revenue growth has reignited questions that first emerged with its 4Q:24 miss and implies continued challenges ahead. This is compounded by Video gross billings growth that (by our math) fell to just ~11% y/y in 2Q after multiple periods of 30%+ growth (see Exhibit 1), suggesting that the source of the weakness may be TTD's critical CTV business. The key questions now are whether restructuring can meaningfully reaccelerate growth in the near term and whether TTD can defend its leadership in CTV against competitors including AMZN. These fundamental uncertainties, tough compares into '26, and open web headwinds lead us to see limited upside and a more balanced risk reward from here, as we downgrade TTD to Equal-weight with a $50 price target."

For an analyst ratings summary and ratings history on The Trade Desk click here. For more ratings news on The Trade Desk click here.

Shares of The Trade Desk closed at $52.40 yesterday.

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