Why The Trade Desk Fell Yet Again Today

• The Trade Desk fired its CFO implicit the weekend.

• In response, respective Wall Street analysts lowered their terms targets connected the banal Tuesday.

• Shares look cheap, but large questions stay astir the C-suite turnover and concerns implicit competition.

• 10 stocks we similar amended than The Trade Desk ›

Shares of The Trade Desk (NASDAQ: TTD) were tumbling again connected Tuesday, pursuing yesterday's large sell-off. As of 12:15 p.m. EDT today, shares were down 4.7%, and are present down astir 12% week-to-date.

Yesterday, shares were rocked by the announcement that Chief Financial Officer Alex Kayyal, who had been appointed to the relation conscionable 5 months ago, was fired implicit the weekend. While shares fell connected the news, today's consequent downgrades by not 1 but 3 sell-side analysts sent shares different limb lower.

On Monday, The Trade Desk announced that CFO Alex Kayyal would beryllium leaving the company, with Chief Accounting Officer Tahnil Davis replacing Kayyal portion the institution looks for a imperishable successor.

The announcement was surely strange, fixed that Kayal had been appointed to the presumption backmost successful August, lone 5 months ago. Kayal besides remains connected the company's Board of Directors, further complicating matters.

The filing notes Kayyal "was terminated," effectual January 24, which is simply a Saturday, and that helium volition stay connected the Board "through the Company's 2026 yearly gathering of stockholders." That seems to bespeak that Kayyal volition permission the Board aft his word ends this year, and that helium was fired for immoderate reason. Fortunately, it doesn't look to beryllium related to past quarter's financials, arsenic the institution reiterated its 4th fourth guidance successful the filing.

Still, the speedy turnover successful the C-suite is nary uncertainty unsettling shareholders, who person already seen The Trade Desk's banal plummet 76% from all-time highs amid decelerating revenue.

The firing is besides unsettling Wall Street analysts arsenic well. Today, not 1 but 3 sell-side analysts astatine Citigroup, Truist Financial, and Rosenblatt Securities each lowered their terms targets connected the stock. Citi lowered its terms people from $50 to $38, Truist lowered its much bullish terms people from $85 to $60, and Rosenblatt lowered its terms people from $64 to $53.

The Trade Desk's diminution surely could beryllium an accidental to buy, but investors should beryllium alert that the banal was highly costly earlier this multi-year decline. After today's decline, shares commercialized astatine conscionable astir 16 times 2026 adjusted (non-GAAP) net per stock estimates.