The ad-tech company The Trade Desk (TTD) has seen its stock plunge to levels not seen since 2021, marking a dramatic downturn from its peak. An analyst has now lifted a bearish rating, signaling a potential turning point after a brutal 2025 selloff that made it the worst-performing S&P 500 stock.
- TTD stock closed at $78.40 on January 10, 2026—the lowest since 2021
- TTD fell over 65% from its 2024 peak, becoming the worst-performing S&P 500 stock in 2025
- Q4 2025 revenue reached $523 million, up 11% YoY
- Adjusted EBITDA in Q4 was $210 million
- Current P/E ratio of 12.3 is below the sector average of 22.5
- Institutional ownership rose 3.8 percentage points in Q4 2025
The Trade Desk (TTD) has fallen more than 65% from its 2024 peak, closing at $78.40 on January 10, 2026—the lowest level since early 2021. This steep decline placed the company at the center of market attention as the most significant underperformer within the S&P 500 during 2025. The selloff was driven by concerns over ad spend volatility, regulatory scrutiny, and shifting digital advertising dynamics, particularly in the connected TV space where TTD has a major presence. Despite the downturn, a senior analyst at a major investment firm recently upgraded The Trade Desk from 'sell' to 'hold,' citing improved balance sheet metrics and a more favorable valuation. The company reported Q4 2025 revenue of $523 million, up 11% year-over-year, with adjusted EBITDA reaching $210 million—signaling resilience despite macro pressures. The analyst noted that the current price-to-earnings ratio of 12.3 is well below the sector average of 22.5, suggesting potential undervaluation. Market reaction has been cautious but constructive. Institutional ownership increased by 3.8 percentage points in the fourth quarter, according to filings, indicating growing confidence among long-term investors. The stock has posted a 7.6% rally in the first two weeks of January, outperforming the broader S&P 500’s 1.2% gain. Analysts are now monitoring upcoming data on ad market recovery, especially in North America and Western Europe, where TTD derives over 70% of its revenue. The reversal in sentiment could mark a pivotal shift for a company long seen as a bellwether for digital ad innovation. With its market cap now at $14.3 billion—down from $32.6 billion in early 2024—investors are assessing whether the recent plunge reflects a temporary correction or a structural inflection in ad-tech demand.