The Trade Desk (TTD) stock is down 90% from its all-time high, and the article attributes the weakening business to a botched rollout of an AI-powered platform and competition from Amazon (AMZN). Second-quarter revenue grew 3% year over year, analysts expect revenue to fall about 5% in 2026 and another 5% next year, and the stock trades at 11 times forward earnings. The author judges it a stock to avoid, sees value potential among faster-growing AI infrastructure companies, and says they would wait for a good quarter before revisiting it.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
advertisingartificial intelligencevaluationAmazonThe Trade Desk
Open a keyword to see other news on the same topic.
Related news
- Why Is Everyone Ignoring Trade Desk Stock's High Cash Yield?
Trade Desk (TTD) closed on October 16, 2026 at $12.23 a share, 91.2% below its December 4, 2024 high, with a market value of $5.7 billion. Its free cash flow over the last twelve months equals 14.8% of that value, versus 4.4% for the median S&P 500 company. Free cash flow for the four quarters ended June 30, 2026 reached $849 million, up from $746 million, even though net income still declined. However, management guided fiscal Q3 2026 revenue to at least $650 million, below $739 million a year earlier, and cut 15% of staff in September. The next report, due around November 5, 2026, will show whether cash keeps growing as sales slow.
- Rowan Street Capital Exits The Trade Desk (TTD) as Thesis Breaks
Rowan Street Capital exited its long-term position in The Trade Desk (TTD) as stated in its Q3 2026 investor letter, after concluding the investment thesis had broken. The fund first bought TTD in March 2020, and the position grew to about 13% of the portfolio and appreciated roughly 6x at its peak. On October 21, 2026, TTD closed at $12.59 with a $5.95 billion market capitalization, down 66.83% year to date and trading within a 52-week range of $11.62 to $55.11. In the same letter, the fund said its portfolio gained 11% in Q3, its year-to-date loss narrowed to about 7% by October 21, and it has gained 183% since June 2022.
- If Amazon Grows At 10% a Year, Here’s What $1,000 Becomes By 2030
The article models a 1,000 USD investment in Amazon (AMZN), which could grow to about 2,032.90 USD by October 2031 in its base case, a 103.29% total return, based on a five-year model target of 533.36 USD per share. Shares trade at 252.75 USD, below the 287.20 USD 52-week high, while AWS revenue reached 42.2 billion USD last quarter, up 36.7%. Advertising revenue rose 26% to 19.8 billion USD, and the 2026 capex plan was raised to about 220 billion USD from 200 billion USD. Risks cited include trailing free cash flow of -7.6 billion USD and a beta of 1.456. The consensus target is 331.72 USD, with 16 strong buy ratings, 43 buys, 2 holds and no sells.
- Amazon Survived a 50% Crash. Here’s What a $1,000 Investment Became
Amazon's shares fell roughly 50% after its 2022 loss, its first unprofitable year since 2014, but recovered as AWS growth accelerated. AWS revenue rose 36.7% to $42.2 billion in Q2 2026, while advertising reached $19.8 billion, up 26%. A $1,000 investment made 10 years ago would now be worth $5,966 (a 496.6% total return), ahead of the S&P 500's 254.56%. Over five years, the same investment returned 49.9%, trailing the index's 68.15%. The author leans bullish but watches spending, noting about $220 billion in expected 2026 cash capex, trailing free cash flow of -$7.6 billion and a P/E near 35.
- Trade Desk (TTD) Faces A UBS Price Target Cut, Is It 58% Below Fair Value?
UBS has trimmed its price target for Trade Desk (TTD), citing weaker advertiser budget allocation and tougher competition from Amazon for digital ad spending. The share price has rebounded over the past 1 day and 7 days but is still down 15.1% over 30 days and 37.2% over 90 days. The stock's 1-year total shareholder return has declined 76%, pointing to fading momentum as investors reassess growth prospects and risk after the latest guidance and price target cut.
- Amazon’s New Bee Wearables Come With a $12 Subscription. Here’s Why the Fee Barely Matters
Amazon began selling the $75 Bee Frontier bracelet on October 15 and showed the $100 Bee Eclipse, which magnetically snaps onto the back of a smartphone, with no release date yet. Both devices listen through the day to create summaries, reminders and tasks. The bigger change is software: Bee Pro costs $11.99 a month and adds unlimited summaries, Amazon.com links, Alexa+, Gmail and Outlook, while free users keep 14 days of memory. The article argues the fee barely matters to Amazon's numbers: 1 million subscribers at $143.88 a year would add about $144 million, or 0.3% of the $52.85 billion subscription line, while advertising grew 26% in the June quarter. It also compares the model with Meta's Reality Labs, which lost $4.62 billion in the June quarter on $431 million in revenue.
Related markets
Latest news
- Exxon Just Raised Its Dividend By 3.9%. Its Free Cash Flow Has Surged 90% This Year. Here’s What That Gap Means
ExxonMobil raised its quarterly dividend by 3.9%, extending its growth streak to 44 consecutive years, a longer run than 95% of S&P 500 companies. The raise is modest relative to free cash flow, which rose 90% year over year to $39 billion over the last nine months, with $19.1 billion generated in the third quarter alone. The article argues Exxon treats the dividend as a fixed cost, since its cash flow is highly variable and has been lifted by higher oil prices and refining margins tied to supply disruptions in the Middle East. Instead, the company repurchased $5.1 billion of shares in the quarter and cut net debt by $11 billion year to date, which the article says builds flexibility for future downturns.
- Should You Buy Stocks Ahead of the Midterms? History Says There's a 100% Chance Of This Happening If You Do.
A tech sell-off led by AI chip stocks, the war in Iran, higher inflation and rates, and midterm uncertainty have weighed on stocks heading into November. Since 1950, the S&P 500 has posted positive 12-month returns every time investors bought at the end of October in a midterm year, with an average gain of 16.6%. Over the shorter October-to-year-end window, returns were positive in 13 of 19 midterm years. The author attributes this to markets rebounding once election uncertainty clears and to a preference for divided government, but warns the pattern may fail if an AI bust or new data center curbs emerge. Citing Anthropic's S-1 and semiconductor firms that report being sold out, the author concludes that a long-term plan with regular contributions matters more than short-term moves.
- Is Palantir Stock a Buy?
Palantir has risen more than 3,200% from its 2022 all-time low, pulled back into correction territory last week, then recovered to about 7% below its mid-month record high. The author argues its productivity gains for clients, such as Wendy's cutting an order and inventory tracking process from weeks to five minutes, justify a premium valuation, but notes analysts forecast 84% revenue growth this year and 50% in 2027. The stock trades at a P/E of 166, about 121 forward earnings, and 83 on 2027 earnings, so the author says much of the growth already appears priced in. Given that, the author prefers to watch the stock rather than add to a position, warning that any slowdown in growth could push the stock lower.
- If the AI Boom Goes Bust, What Happens to Crypto? Here's the Most Likely Scenario for the Crypto Market.
The author outlines three crypto scenarios if AI stocks collapse: a base case (70% odds) where most coins, including Bitcoin, fall with AI stocks before capital rotates into Bitcoin, a bull case (20%) where major coins shrug off the bust, and a bear case (10%) where a broad risk-off rout hits most coins for months. Bitcoin, already 39% below its early October 2025 high and about 60% of the sector's total value, serves as the main signal across all three. Ethereum and Solana would likely lag, since many AI tokens in their ecosystems would need to clear first. The author says he plans to keep buying crypto in all three scenarios, leaning toward Bitcoin and Hyperliquid in the bear case.
- Why AI is boosting Meta's ad business while hurting Google search
Meta's ad revenue rose 26% year over year to $63.1 billion in the third quarter, more than twice the pace of Google Search's 12% growth to $63.4 billion, the widest gap in Meta's favor since 2021. The article attributes Meta's advantage partly to AI-driven ad targeting, while Google faces pressure as chatbots such as ChatGPT, Claude and Meta's Muse reduce clicks on search links. Alphabet shares fell more than 12% after its earnings report, wiping out about $500 billion in market value, while Meta stock dropped 14% in October. Both companies are spending heavily on AI infrastructure, which has pushed them into negative free cash flow and raised questions about whether that spending will generate enough revenue. Google Cloud grew over 100% to $31 billion in quarterly revenue, and Meta CFO Susan Li said almost 10 million advertisers used at least one of its AI tools.
- The Stock Market Is Doing Something for Only the 3rd Time in 28 Years, and History Says It's Clear What Comes Next for Stocks
Since the 2022 bear market bottomed, the Dow, S&P 500 and Nasdaq Composite have gained 82%, 115% and 154%, helped by AI infrastructure build-out, record IPOs and buybacks. The article highlights the Shiller P/E (CAPE) ratio, at 40.66 on Oct. 26, 133% above its long-term average of 17.44, and above 40 only three times in history, all since 1999. Previous episodes above 40 were followed by sharp falls, including the dot-com crash that cut the S&P 500 by 49% and the Nasdaq Composite by 78% by late 2002. The author notes the ratio has stayed above 40 for six months but argues bear markets are often short-lived, citing a Bespoke Investment Group analysis of S&P 500 bull and bear markets since 1929; the article is cut off before giving those results.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.