The Trade Desk Faces Intense Competition
The Trade Desk (NASDAQ: TTD) saw a dramatic stock decline of 67.7% in 2025, with a current market capitalization of $18 billion. The company’s revenue growth slowed to 20% in the first nine months of 2025, down from 27% the previous year, amid increasing competition from Amazon and the rise of artificial intelligence in digital advertising. This has raised concerns among investors about its future viability in a changing market.
In the last twelve months, The Trade Desk reported a net income of $439 million, leading to a trailing price-to-earnings (P/E) ratio of 43, a premium compared to the broader market even after the stock’s significant drop. Analysts note that the company’s competitive landscape, particularly with Amazon’s entry into TV advertising and advancements in AI, poses substantial risks to its business model.
