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Trade Desk Stock Plummets 65% in 2025
25 Nov, 2025
Summary
- Trade Desk shares dropped 65% in 2025, underperforming the S&P 500.
- Revenue growth slowed to 18% year-over-year in Q3 2025.
- The company maintains strong profitability with 16% net income margin.
The Trade Desk, a key player in programmatic advertising, has seen its stock value decline sharply by approximately 65% in 2025. This dramatic sell-off contrasts starkly with the S&P 500's positive performance over the same period, leaving investors concerned about the company's future.
While the company's platform facilitates ad purchases across the open internet, including fast-growing sectors like connected TV and retail media, its revenue growth has cooled. Third-quarter revenue increased by 18% year-over-year, a deceleration from previous periods, although management attributes some of this to strong political ad spending in Q3 2024.
Despite the growth slowdown and increased competition, The Trade Desk remains a strong business. The company reported a 16% net income margin and a 43% adjusted EBITDA margin in the third quarter, underscoring its profitability and its position as a significant cash generator, with $155 million in free cash flow reported for the quarter.
