Adtech Stocks Under Pressure from Tech Giants
The Trade Desk (NASDAQ: TTD) and AppLovin (NASDAQ: APP) are facing mounting competition from industry leaders Amazon (NASDAQ: AMZN) and Meta Platforms (NASDAQ: META). The Trade Desk has reported a decline in revenue growth, from 26% in 2024 to 18% in 2025, with a projected 10% growth for the upcoming quarter. In contrast, AppLovin experienced a 66% revenue increase in Q4 and forecasts a 19% growth for the first quarter of 2026. Analysts project AppLovin’s overall revenue growth to reach 46% this year.
Amidst these dynamic changes, AppLovin’s Axon 2 ad optimizer is gaining traction, presenting a competitive edge over its peers. Meanwhile, The Trade Desk’s new ad-buying platform, Kokai, seeks to leverage artificial intelligence to enhance its offerings. However, The Trade Desk’s performance has raised concerns, as its adjusted EBITDA is expected to decline, while AppLovin boasts an anticipated EBITDA margin expansion from 77% to 84%.
AppLovin currently trades at a forward P/E ratio of 29, which reflects its growth potential amidst an SEC investigation into its data-collection practices, while The Trade Desk’s shares are trading at a low valuation of under 12 times earnings but struggle with deteriorating financial metrics.
