Trade Desk drops after report that Publicis advised clients against using its platform
By Anhata Rooprai
March 18 (Reuters) - Advertising technology firm Trade Desk's shares tumbled on Wednesday as Wall Street analysts downgraded the stock after French ad giant Publicis Groupe advised its clients against using the company's platform.
The stock slid over 5%, adding to Tuesday's 7.4% drop following Ad Age's report on a recent Publicis-commissioned audit that found Trade Desk had violated multiple clauses of their agreement, prompting the recommendation.
Trade Desk charged multiple fees that exceeded the limits of the agreement and opted clients into extra features without consent, the report said, citing the audit.
Publicis, in an emailed statement on Wednesday, confirmed the report, saying that "an experienced independent auditor concluded that Trade Desk did not pass the audit. As a result, we will no longer be recommending Trade Desk ... for our clients."
Unlike the closed ad ecosystems of Alphabet's Google and Meta-owned Facebook, Trade Desk is an independent intermediary that lets companies buy ads and run campaigns on any website or app they pick.
Trade Desk said it is "aware of questions related to a Publicis audit process." But it added that "any notion that TTD failed an audit is not true."
Publicis' request "included asks for data that would violate customer and partner confidentiality agreements," Trade Desk said, but added that it would work with the company to provide workable alternatives and other detailed information.
Publicis, however, said that none of the options proposed by Trade Desk resolved the issues raised by the audit.
At least two brokerages downgraded Trade Desk following the news, while three lowered their price targets. The stock has fallen nearly 34.7% this year, following a 68% decline in 2025.
"We're not quite sure how conservative current 2026 estimates might be if the company does, in fact, lose some of its client base as a result of this audit," brokerage Stifel said.
The company faces stiff competition from so-called "walled gardens" that integrate content, commerce and user data to attract advertisers. Amazon's ad-buying platform, in particular, with its vast trove of shopper data, has become a formidable rival.
(Reporting by Anhata Rooprai in Bengaluru; Editing by Diti Pujara and Alan Barona)