What Happened?
Shares of digital advertising platform The Trade Desk (NASDAQ: TTD) jumped 4.3% in the afternoon session after an analyst note eased investor concerns about its relationship with a key client, Walmart.
Investment firm Stifel reiterated its Buy rating and $90 price target on the digital advertising company following meetings with its executives. The firm's note clarified that The Trade Desk "has not lost exclusivity at Walmart and remains the sole DSP provider for Walmart in the U.S.," with the only change occurring in Mexico. This news provided a boost to the stock, which has been under significant pressure recently.growth.
After the initial pop the shares cooled down to $54.88, up 4.2% from previous close.
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What Is The Market Telling Us
The Trade Desk’s shares are very volatile and have had 25 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 6 days ago when the stock gained 3.2% on the news that Federal Reserve Chair Jerome Powell indicated potential interest rate cuts could be coming. The broader market, particularly the tech sector, surged after Federal Reserve Chair Jerome Powell indicated that interest rate cuts could be on the horizon. The tech-heavy Nasdaq Composite jumped 1.9% on the news, lifting growth-sensitive stocks like The Trade Desk.
The Trade Desk is down 53.4% since the beginning of the year, and at $54.88 per share, it is trading 60.7% below its 52-week high of $139.51 from December 2024. Investors who bought $1,000 worth of The Trade Desk’s shares 5 years ago would now be looking at an investment worth $1,130.
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