The Trade Desk Faces Critical Earnings Test Amid Steep Decline

All attention is focused on The Trade Desk as the advertising technology firm prepares to release its quarterly financial results after market close. The company finds itself at a pivotal moment, with its stock mired in a severe downturn that has erased 58% of its value since the beginning of the year. Investors have been relentless in their selling, creating immense pressure on management to deliver convincing third-quarter numbers that could potentially reverse the negative sentiment—or risk triggering another sharp decline.

Shareholders of The Trade Desk have endured a nightmarish period throughout 2025, with the stock currently trading approximately 64% below its level from the previous year. The downward trajectory has continued unabated, with an additional 9.4% loss recorded over just the past six months—significantly underperforming broader market indices. This substantial sell-off stems from growing concerns among investors that the company's revenue growth may be slowing considerably, fueling the massive exodus from the stock.

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

Revenue Projections Take Center Stage

Market participants are zeroing in on one critical metric: third-quarter revenue. Financial analysts project the company will report approximately $719 million in sales, representing year-over-year growth of about 14.5%. The company's own previous guidance indicated expectations of at least $717 million. In the current climate, any deviation from these projections—whether positive or negative—is likely to trigger immediate price movements as market patience wears thin.

Profitability Metrics Under Scrutiny

Beyond top-line revenue, profitability measures will face intense examination. Market experts anticipate adjusted earnings per share of $0.44, compared to $0.41 during the same quarter last year. This key performance indicator will reveal whether The Trade Desk can maintain operational efficiency despite challenging market conditions. Falling short of expectations could accelerate the existing downward trend, while a positive surprise might provide the catalyst needed to spark a reassessment among skeptical investors and potentially mark the beginning of a recovery.