Investing.com -- The Trade Desk was hit with downgrades from three Wall Street firms on Thursday after the digital advertising platform's second-quarter guidance came in below expectations, raising fears of a sustained deceleration in growth amid agency tensions, competitive pressures, and Middle East-related ad spending headwinds.

First-quarter revenue of $689 million grew 12% year-on-year, beating the consensus of approximately $679 million, and adjusted EBITDA of $206 million also topped estimates.

However, second-quarter revenue guidance of at least $750 million fell short of Street expectations of around $771 million, implying growth of just 8% year-on-year, representing a deceleration that triggered the downgrades.

Oppenheimer's Jason Helfstein cut the stock to Perform from Outperform, removing his $35 price target, saying he sees "no catalyst until revenue accelerates."

William Blair's Ralph Schackart downgraded TTD to Market Perform, citing competitive share losses, a "sustained lower growth profile," and friction around the pricing of the company's Kokai AI platform upgrade, which he said is "higher than expected, leading to more difficult pricing discussions with customers."

KeyBanc's Justin Patterson downgraded the stock to Sector Weight, arguing that "the combination of Middle East turmoil, ad agency tensions, and changes to industry structure are pressuring growth."

Patterson added that while geopolitical and agency factors could eventually resolve, "we do not see the competitive factor changing any time soon."

KeyBanc now models 9% revenue growth in both 2026 and 2027, a step-down from 19% growth in 2025 and 26% in 2024.