Why The Trade Desk Stock Is Down Today

The Trade Desk, Inc. TTD shares are trading lower Friday after the company issued fourth-quarter revenue guidance below estimates.

The Details:

The Trade Desk beat the consensus estimates for earnings and sales with third-quarter earnings of 33 cents per share versus the 29 cent estimate and quarterly sales of $493.27 million, above the estimate of $487.16 million.

However, the company issued fourth-quarter guidance of $580 million in revenue, below the estimate of $610.82 million.

"Q3 was a strong quarter for The Trade Desk as we delivered revenue of $493 million, accelerating growth to 25%. This performance underlines the premium that advertisers are placing on precision, agility and transparency as they seek to maximize returns from their campaigns," said Jeff Green, CEO of The Trade Desk.

Multiple analysts updated their coverage on The Trade Desk following the earnings report:

• Truist Securities analyst Youssef Squali maintained The Trade Desk with a Buy and lowered the price target from $90 to $80.
• Morgan Stanley analyst Matthew Cost maintained The Trade Desk with an Overweight and lowered the price target from $105 to $70.
• Susquehanna analyst Shyam Patil maintained The Trade Desk with a Positive and lowered the price target from $105 to $75.
• Keybanc analyst Justin Patterson maintained The Trade Desk with an Overweight and lowered the price target from $100 to $84.

Shares of TTD are moving on heavy trading volume Friday. According to data from Benzinga Pro, more than 19 million shares have been traded in the session, far exceeding the stock's 100-day average of 3.753 million shares.

The Trade Desk is one of the top trending stocks on WallStreetBets and Yahoo Finance on Friday.

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TTD Price Action: According to Benzinga Pro, shares are down roughly 17% at $63.54 at the time of publication.

Image: Mohamed Hossan from Pixabay