The Trade Desk (TTD), once a growth darling, is down on its luck. The digital advertising auction house offered up a rare double miss on Thursday.
The company reported adjusted earnings per share (EPS) of $0.34 in the second quarter,missing consensus by $0.06. Revenue of $715.1 million missed the mark by $36.4 million and grew just 3% on an annual basis.
In response, the market traded TTD shares down over 20%, with shares exchanging hands in the $13 range. This is the lowest TTD has traded in six or seven years.
The most significant cause of the major sell-off was the Q3 guidance. Management said it now expects revenue of at least $650 million versus $805 million consensus. Most observers will read this as a sign that earlier anxiety over Alphabet (GOOGL) and Amazon (AMZN) stepping into the digital advertising auction space was correct.
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