Latest news with #AlexKayyal
Yahoo
a day ago
- Business
- Yahoo
Why Trade Desk (TTD) Stock Is Plummeting Today
Aug 8 - The Trade Desk (NASDAQ:TTD) dropped nearly 40% on Friday after warning that new U.S. tariffs are making advertisers nervous, and it's hitting the company hard. CEO Jeff Green told analysts that many of its big-brand clients are dialing back ad spending due to economic uncertainty and pressure from tariffs. Warning! GuruFocus has detected 2 Warning Sign with TTD. The warning overshadowed an 18.7% year-over-year revenue jump to $694 million, which beat expectations. But adjusted earnings per share landed at $0.41, just short of forecasts. Adding to the shakeup, the company also announced a leadership change. Board member Alex Kayyal is stepping in as the new CFO, replacing Laura Schenkein, who will stay on through the end of the year to support the transition. TTD shares, which recently gained momentum after joining the S&P 500, have now erased those gains, and more, dropping below $55 and down over 50% for the year. The combination of geopolitical pressures and internal changes is leaving investors wary of what's next for one of the ad tech sector's biggest names. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
2 days ago
- Business
- Business Insider
Cathie Wood's Friday Flurry: Buys TTD and CRSP, Sells Roblox and Palantir Stocks
Popular investor Cathie Wood 's ARK Invest ETFs made several changes to their holdings on Friday, August 8. The firm bought shares of ad-tech company The Trade Desk (TTD) and gene-editing firm CRISPR Therapeutics (CRSP), while trimming stakes in gaming platform Roblox (RBLX) and Palantir Technologies (PLTR). Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. The biggest buy of the day was The Trade Desk, with ARK Innovation ETF (ARKK) purchasing 210,664 shares worth $29.5 million. The trade came the same day TTD posted second-quarter results, which showed a revenue slowdown and sent the stock tumbling in pre-market trading on Friday. The company also named Alex Kayyal as its new chief financial officer, effective August 21, replacing Laura Schenkein. Following the results, Several Wall Street analysts downgraded the stock, pointing to slower growth, rising competition, and valuation pressures. ARK also bought 8,292 shares of CRISPR Therapeutics for $714,200. The move indicates Wood's continued confidence in the gene-editing pioneer's long-term prospects, even as the biotech sector faces ongoing volatility. ARK Trims Stakes in These Stocks On the sell side, ARK Invest pared back holdings in several well-known names. The firm sold $10.8 million worth of Roblox shares from its ARKK and ARK Next Generation Internet (ARKW) ETFs. It also trimmed its stake in Palantir Technologies, a data analytics and AI software provider for governments and enterprises, unloading $7.1 million worth of shares. In addition, ARK reduced its Shopify (SHOP) position by $7.1 million. The e-commerce platform helps businesses create and manage online stores. The fund also cut its Pinterest (PINS) holdings by $14.0 million across ARKK and ARKW. In terms of share price performance, RBLX, PLTR, SHOP, and PINS have gained 244%, 536%, 119%, and 21%, respectively, over the past year. Let's take a brief look at how all these stocks perform on
Globe and Mail
2 days ago
- Business
- Globe and Mail
Should You Buy The Trade Desk Stock After Its 40% Crash Post-Earnings? Wall Street Says This Will Happen Next.
Key Points The Trade Desk stock plummeted nearly 40% following its second-quarter financial report as investors reacted to slowing revenue growth and tariff uncertainty. The Trade Desk's independent business model has helped the company forge important partnerships across the connected TV and retail advertising landscape. Wall Street expects adjusted earnings to increase at 14% annually through 2026, which makes the current valuation of 31 times adjusted earnings look tolerable. 10 stocks we like better than The Trade Desk › The Trade Desk (NASDAQ: TTD) had its worst day as a public company on Friday, Aug. 8. Shares dropped nearly 40% as investors processed second-quarter financial results, the departure of CFO Alex Kayyal, and a cautious outlook due to tariff uncertainty. Most Wall Street analysts think the market overreacted. The Trade Desk still has a median target price of $80 per share, which implies 48% upside from its current share price of $54. However, forecasts range from $45 per share at the low end (implying 17% downside) to $135 per share at the high end (implying 150% upside). Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Here's what investors should know before buying the post-earnings dip. The Trade Desk's independence differentiates it from Amazon, Google, and Meta Platforms The Trade Desk operates the leading independent demand-side platform (DSP), a type of adtech software that helps media buyers plan, measure, and optimize advertising campaigns across digital channels. Its platform leans on artificial intelligence to help clients manage budgets, customize bids, and dynamically target consumers. The Trade Desk's independence -- meaning it does not own media content that might bias ad spending on its platform -- distinguishes it from larger competitors, such as Alphabet 's Google, Meta Platforms, and Amazon. Those companies have a clear incentive to steer media buyers toward their own ad inventory on websites like Google Search and Instagram, which creates a conflict of interest. In other words, The Trade Desk is more transparent. The company's independence has allowed it to form a number of critical partnerships. It sources ad inventory from streaming platforms Netflix, Roku, Walt Disney, and Spotify. It sources data from retailers Albertsons, Target, and Walmart. That creates opportunities brands cannot find on other platforms, such that The Trade Desk has become a leader in connected TV (CTV) advertising and a formidable player in retail advertising. Importantly, the company has consistently taken market share in digital advertising, and CEO Jeff Green believes that trend will continue for the foreseeable future. That sets The Trade Desk up for solid growth in years to come. Adtech spending is projected to increase at 14% annually through 2030, according to Grand View Research. The Trade Desk reported slowing growth in the second quarter and gave weak guidance that unsettled investors Despite the sharp decline in the stock, The Trade Desk actually reported reasonably good second-quarter financial results that beat estimates on the top and bottom lines. Revenue rose 19% to $694 million, and non-GAAP (generally accepted accounting principles) net income jumped 5% to $0.41 per diluted share. "With our leadership in CTV as well as other areas such as retail media, digital audio, identity, measurement, and data, we are winning more business," said CEO Jeff Green. Nevertheless, investors were clearly concerned about slowing growth, particularly because larger competitors delivered stronger results. Meta Platforms and Amazon said advertising revenue increased 21% and 23%, respectively, in the second quarter. The Trade Desk has historically outpaced its largest rivals, so the latest report raises questions about its ability to do so in the future. That is particularly true because the company provided weak guidance for the third quarter. Management says revenue will increase by 14% to $717 million, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) will increase 8% to $277 million. But newly appointed CFO Laura Schenkein said actual results could be worse if tariff uncertainty leads to a less favorable economic environment. That gloomy outlook caused the stock to plunge nearly 40% following the report. Bank of America analyst Jessica Ehrlich downgraded the stock to hold and slashed her target price to $55 per share (down from $130 per share). She still thinks The Trade Desk's revenue will increase at a double-digit pace in the future, but no longer believes a premium valuation is justified because the company is losing momentum. MoffettNathanson also downgraded the stock to sell for similar reasons, slashing its target price to $45 per share. What Wall Street expects from The Trade Desk in the coming quarters The Trade Desk's second-quarter report raised questions about its ability to grow revenue faster than 20% annually, and Wall Street analysts are clearly divided on the issue. The company reorganized its sales team earlier this year after missing its own guidance in the fourth quarter for the first time in 33 quarters. Growth could reaccelerate as those changes improve workflows, especially once tariff uncertainty dissipates. Regardless, Wall Street currently estimates The Trade Desk's adjusted earnings will increase by 14% annually through 2026. That forecast makes the current valuation of 31 times adjusted earnings look tolerable, and it leaves room for upside if the company manages a material reacceleration in sales growth in the future. To that end, patient investors should consider buying the stock on the post-earnings dip. Should you invest $1,000 in The Trade Desk right now? Before you buy stock in The Trade Desk, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and The Trade Desk wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Bank of America is an advertising partner of Motley Fool Money. Trevor Jennewine has positions in Amazon, Roku, and The Trade Desk. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Netflix, Roku, Spotify Technology, Target, The Trade Desk, Walmart, and Walt Disney. The Motley Fool has a disclosure policy.
Yahoo
3 days ago
- Business
- Yahoo
The Trade Desk names new CFO, warns of tariff disruption
This story was originally published on CFO Dive. To receive daily news and insights, subscribe to our free daily CFO Dive newsletter. Dive Brief: Advertising technology platform The Trade Desk announced that board member Alex Kayyal will take the company's CFO seat beginning Aug. 21, replacing long-time company alum Laura Schenkein, according to a Thursday press release. The Ventura, California-based business, which enables companies to launch ad campaigns, tapped Kayyal as CFO 'to drive sustained growth and scale for the company,' according to the Thursday release. Schenkein will depart after more than a decade-long tenure at the digital marketing platform. She first joined as its director, financial planning & analysis, and assumed the CFO post in June 2023, according to her LinkedIn profile. Schenkein will remain with The Trade Desk as a non-executive officer through the end of this year, and will work with Kayyal to enable a 'seamless transition of responsibilities,' the company said Thursday. 'I'm proud of what we've accomplished together from our early days as a start-up to going public to joining the S&P 500,' Schenkein said Thursday during the company's most recent earnings call of her 11-year tenure with the business, which went public in September 2016. Dive Insight: Kayyal joined the company's board in February, and has served as a partner for Lightspeed Venture Partners since February 2023, according to a securities filing. His past experience also includes a seven-year term at software company Salesforce, where he held roles including SVP and managing partner, Salesforce Ventures, according to his LinkedIn profile. In association with his appointment as CFO, Kayyal has resigned as a member of the special committee of the board, according to the filing with the Securities and Exchange Commission. As CFO, Kayyal is set to receive an annual base salary of $600,000 and a signing bonus of $600,000, as well as a relocation benefit of $400,000, according to the filing. He will also be set to receive an initial target bonus of $600,000, as well as a grant of restricted stock awards with an aggregate equity amount of $15 million. 'I met Alex in 2014 when [he] was one of the company's earliest investors,' Schenkein said Thursday during the company's earnings call. 'He is respected and I have confidence in him as he takes on this new role.' Shares of the company plunged by roughly 37% Friday, according to Nasdaq, following its second quarter earnings report, amid tariff uncertainty and a possible pullback on ad spending by large firms. Company executive leaders are monitoring how shifts in U.S. trade policy and other economic risks may influence company performance. 'Assuming the macro environment remains stable and we don't see disruptions from large global brands, which make up a significant portion of our business due to tariff uncertainty, we expect Q3 revenue to be at least $717 million,' Schenkein said Thursday. The Trade Desk is also facing increasing competition in the online advertising space from companies such as Amazon — which reported a 23% boost in ad revenue to $15.7 billion for its most recent quarter last week, according to a Friday report by CNBC. While 'some of the world's largest brands are absolutely facing pressure and some amount of uncertainty,' including tariffs, uncertainty is also 'an opportunity for us to grab land,' CEO and Founder Jeff Green said Thursday in response to an analyst question. For the quarter ended June 30, The Trade Desk reported a 19% year-over-year jump in revenue to $694 million, according to its earnings report. Its net income rose to $90 million, compared to $85 million for the prior year period. Both Green and Schenkein also highlighted particularly robust growth in the company's 'Connected TV' or CTV advertising offerings, a form of advertising for streaming or over-the-top (OTT) devices. The area remains The Trade Desk's fastest growing channel. During the second quarter, video, which includes CTV, represented 'a high 40s percentage share of our business and continues to grow as a percentage of our mix,' Schenkein said. In addition to tariffs, Green pointed to other trends that may influence performance, including artificial intelligence and increasing use of 'walled gardens,' or closed systems in the online advertising space. 'The digital advertising landscape is evolving rapidly with ongoing regulatory scrutiny of walled gardens, the rise of AI and growing demand for transparency and independence,' Green said. 'We believe the next decade will be pivotal in determining the winners and losers in our space, and that staying true to our long-term vision is more important now than ever.' The Trade Desk declined to comment beyond the press release. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Should You Buy the 40% Post-Earnings Plunge in The Trade Desk Stock?
Trade Desk (TTD) shares tanked nearly 40% on Friday after the ad-tech firm came in ahead of Street estimates for its fiscal Q2 but said tariffs will materially hurt performance in the current quarter. Also on Friday, the company announced a surprise departure of its CFO Laura Schenkein, naming Alex Kayyal as her immediate replacement. More News from Barchart Robinhood Stock Seemingly Can't Be Stopped in 2025. Is It Too Late to Buy HOOD Here? Cathie Wood Is Buying Shares of This Little-Known Ethereum Treasury Company. Should You? Dear Ford Stock Fans, Mark Your Calendar for August 11 Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Trade Desk stock has been a big disappointment for its investors since the start of this year. At the time of writing, it's down well over 50% versus its high in early January. What a CFO Transition Means for Trade Desk Stock The unexpected leadership turnover added to investor woes this morning as it raises concerns about strategic continuity, especially as TTD faces competitive pressure from the likes of Amazon (AMZN). Schenkein's surprise exit after a decade of financial leadership signals uncertainty at a time when macro headwinds are already expected to result in revenue deceleration in Q3. BofA Downgrades TTD Shares to Underperform Bank of America's senior analyst Jessica Ehrlich cautions against buying the post-earnings dip in Trade Desk shares mostly because of competition and execution-related risks. While the Nasdaq-listed firm may still continue to growth its revenue by double-digit percentages, 'it's challenging to justify the premium multiple it has historically received,' she told clients in a research note today. On Friday, Ehrlich downgraded TTD stock to 'Underperform' and slashed her price target in more than half to $55 only, roughly in line with the price at which it's trading at the time of writing. How Wall Street Recommends Playing Trade Desk Note that Wall Street had a consensus 'Moderate Buy' rating on Trade Desk stock tied to an average price target of about $91 heading into its earnings release. However, it's well within reason to expect downward revisions after TTD's financial and operational updates on Friday. On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error al recuperar los datos Inicia sesión para acceder a tu cartera de valores Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos
