Here's Why The Trade Desk Stock Was Down Almost 12% Last Month
Shares of advertising-technology company The Trade Desk (NASDAQ: TTD) were down 11.7% in May, according to data provided by S&P Global Market Intelligence. The stock was down leading up to the release of the company's quarterly financial results as analysts lowered their expectations. And it was even down about 25% at one point due to surprising commentary from Snap -- another company that generates revenue from ads. But The Trade Desk's management was able to regain some lost investor confidence by subsequently issuing commentary of its own.
Digital advertising is an industry experiencing strong growth, and The Trade Desk has been a stock market darling as it rides this wave. However, current volatility in the market has analysts lowering their expectations everywhere, including with this company. For example, on May 9, both RBC Capital analyst Matthew Swanson and Jefferies analyst Brent Thill lowered their price targets for The Trade Desk stock from $105 per share to $85 per share, according to The Fly.
On May 10, The Trade Desk reported financial results for the first quarter of 2022 and it reminded investors why it's been such a darling. In Q1, the company generated revenue of $315 million, which was up 43% year over year -- a sharp acceleration from its 37% growth rate the previous year.
Source Fool.com
