Market Update: The Trade Desk and DataDog Stock Pullbacks
The Trade Desk’s stock has plummeted 73% since its peak in late 2024, while DataDog has experienced a 30% decline. Both companies are facing increased competitive pressure, notably from Amazon’s encroachment into the demand-side platform market. Despite these setbacks, The Trade Desk reported a 20% revenue growth year-to-date in 2025, although this is down from a 27% increase in the same period last year. DataDog’s third-quarter earnings showed a 28% revenue increase, but recent insider selling has added to volatility.
Both companies remain leaders in their respective fields, with substantial total addressable markets. Analysts project that The Trade Desk could achieve mid-teens revenue growth in the coming years, while DataDog’s growing customer base for its AI tools suggests a promising growth trajectory. The forward price-to-earnings ratios stand at under 21 for The Trade Desk and 69 for DataDog, indicating potential investment allure despite current market pressures.
