Why The Trade Desk Stock Fell Last Month
Shares of The Trade Desk (NASDAQ: TTD) fell 10.9% in October 2022, according to data from S&P Global Market Intelligence. The digital ad campaign organizer's investors were spooked by disappointing reports from other companies in the online marketing space. Furthermore, The Trade Desk's analyst day didn't impress anybody.
First, The Trade Desk's annual presentation to financial analysts barely left a ripple on the market. These events are expected to drive investor enthusiasm and leave analysts inspired by the presenting company's latest strategy. Instead, The Trade Desk simply reiterated its existing targets and tactics. The handful of analyst firms that bothered to report on this event held their price targets and ratings steady. Lacking the expected strategy update, The Trade Desk's stock price fell 18% over the next week.
Several titans of the online advertising space reported their results for the third calendar quarter of 2022 in the final week of October. The final straw that broke the space's collective back was when Google parent Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) posted disappointing ad revenues and weak demand for online marketing assets. Many investors connected the dots between Google's leading ad platform and The Trade Desk's pivotal role in giving advertisers access to Google's marketing tools. As a result, Alphabet's stock fell 11.8% over the next two days, dragging The Trade Desk's shares along for a 7% price drop.
Source Fool.com
