Trade Desk Stock Crashes 40% After Earnings

Benzinga

The Trade Desk (NASDAQ: TTD) just posted solid Q2 earnings — 41 cents per share and $694 million in revenue, beating Wall Street estimates. But despite the strong results, the stock plunged nearly 40% after the company projected slower revenue growth for Q3 and announced a CFO transition.  Bank of America responded quickly, slashing its price target from $130 to $55. With customer retention still above 95% and Q3 revenue guidance hitting at least $770 million, is this crash an overreaction? Or is there more to worry about?

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00:00The Trade Desk stock just dropped nearly 40%, even after beating revenue expectations.

00:06The company posted strong Q2 numbers, 41 cents per share in earnings in line with estimates,

00:11and $694 million in sales, beating forecasts.

00:15But shares fell after the company projected slower revenue growth in Q3,

00:19and announced a CFO transition.

00:21Analysts reacted fast, and Bank of America downgraded the stock

00:25and slashed its price target from $130 down to $55.

00:30Customer retention stayed above 95%, and Q3 revenue is still expected to hit at least $770 million.

00:37So was this an overreaction, or are investors right to worry?

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