The Trade Desk’s Growth Slowdown Sparks Investor Concerns Amid AI Platform Launch

Shares of The Trade Desk (TTD) have plummeted 63% year-to-date in 2025, marking the worst performance in the S&P 500. This decline follows a stellar 352% rally from 2020-2024 that earned the adtech firm a spot in the benchmark index.

Second-quarter earnings revealed troubling guidance: Q3 revenue projections of $717 million represent just 14% growth—matching only the pandemic-impacted Q1 2020 as the company's slowest expansion period. The slowdown persists despite the high-profile launch of Kokai, an AI-powered platform upgrade billed as a "new frontier in digital advertising."

Market expectations collided with reality when the promised AI catalyst failed to materialize in forward guidance. The disconnect between technological ambition and financial performance has left investors questioning The Trade Desk's growth trajectory in a shifting digital ad landscape.