Cathie Wood’s ARK Invest Seizes Opportunity in The Trade Desk’s Slump

Shares of advertising technology firm The Trade Desk have endured a punishing year, shedding nearly 70 percent of their value since January. In a notable shift, prominent investor Cathie Wood is now sending a strong contrarian signal to the market. As many shareholders retreated following the severe correction, her firm, ARK Invest, is aggressively buying the dip.

Beyond institutional buying activity, a key strategic development underpins the investment thesis. In late November, The Trade Desk formalized a partnership with financial software company Intuit. This integration with "Intuit SMB MediaLabs" grants the ad-tech platform access to valuable data from millions of small and medium-sized businesses within the QuickBooks and Mailchimp ecosystems. Market observers view this move as a critical competitive advantage against the closed "walled garden" advertising systems of giants like Google and Amazon. The alliance aims to unlock a new revenue stream by enabling more precise targeting of B2B advertising spend, a segment expected to gain significance in upcoming quarters.

Institutional Support Provides a Potential Floor

The recent purchase activity by ARK Invest is emerging as a primary factor behind the stock's attempt to find a bottom. Regulatory filings reveal the fund family bought approximately 385,000 shares for its ETFs on December 4th and 5th. This acquisition, valued at over $15 million, occurred at a price level that technical analysts in U.S. markets identify as a zone of long-term support. The move suggests the fund's management believes the company's growth narrative remains intact despite significant macroeconomic headwinds.

Should investors sell immediately? Or is it worth buying The Trade Desk?

Investor Disappointment Over Slowing Growth

The stock's sharp decline reflects widespread investor disappointment regarding the financial outlook for 2025. The shares currently trade at €34.85, a far cry from their 52-week high. The sell-off accelerated following the third-quarter earnings report in November. While revenue grew 18% year-over-year to $739 million, this figure fell short of elevated investor expectations, signaling a notable growth deceleration. On a positive note, the company maintains strong profitability with an adjusted EBITDA margin of approximately 43%. Furthermore, an expanded share repurchase program underscores management's confidence in the underlying business.

The Road to Recovery Hinges on Year-End Performance

Market focus now shifts to the fourth quarter, for which the company has provided revenue guidance of at least $840 million. Although the average analyst rating remains a "buy" with expectations for substantial upside, the technical picture remains fragile. A successful defense of the current support levels, bolstered by ARK Invest's purchases, could establish a foundation for a potential recovery in 2026.