CTV Partnerships With Disney And Netflix Will Transform Media

Trade Desk’s consensus price target was modestly lowered to $74.48 as analysts cited persistent growth uncertainty, mounting competitive pressures, and a weaker valuation premium offset only partially by improved online ad sentiment and potential outperformance if macro conditions improve.

Analyst Commentary

• Bearish analysts express concern about Trade Desk’s muted growth outlook, citing increased macroeconomic uncertainty, lower visibility on a Kokai-driven turnaround, and heightened risk from agency and client in-housing trends.
• Bearish analysts highlight a perceived “tarnished” valuation premium, arguing the company should now be valued on traditional metrics such as GAAP earnings and free cash flow, reflecting moderating revenue growth and operating leverage.
• Competitive pressures are increasing, with Amazon’s integrations (notably with Disney DRAX and Roku) viewed as eroding Trade Desk’s competitive moat, particularly in the demand-side platform space.
• Bullish analysts point to improved online advertising sentiment and stronger product execution, with recent product announcements said to have addressed previous pain points in the Kokai transition.
• Some bullish analysts raise price targets based on a more favorable second-half 2025 macro/tariff outlook, minimal expected impact from Amazon DSP, and belief that guidance may prove conservative if Trade Desk beats near-term estimates.

What's in the News

• Walmart has ended its exclusive arrangement with The Trade Desk for using Walmart shopper data in ad targeting, potentially weakening Trade Desk's position with a major client (The Information, Aug 2025).
• The Trade Desk repurchased 3.75 million shares ($255.6 million) in Q2 2025, completing the buyback of 22.66 million shares ($1.54 billion) since February 2023 (Key Developments, Aug 2025).
• Alex Kayyal has been appointed CFO effective August 21, 2025, succeeding Laura Schenkein, while bringing extensive technology and investment experience from Salesforce and Lightspeed Venture Partners (Key Developments, Aug 2025).
• The company provided third-quarter 2025 earnings guidance of at least $717 million in revenue (Key Developments, Aug 2025).
• The Trade Desk has been added to multiple major indices including the S&P 500, S&P Global 1200, S&P 500 Growth, and S&P 500 Communication Services Sector, reflecting growing investor recognition, while also expanding its AI-driven creative offerings through partnerships such as Rembrand and Nova (Key Developments, July–June 2025).

Valuation Changes

Summary of Valuation Changes for Trade Desk

• The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $75.39 to $74.48.
• The Future P/E for Trade Desk remained effectively unchanged, moving only marginally from 52.96x to 52.32x.
• The Consensus Revenue Growth forecasts for Trade Desk remained effectively unchanged, moving only marginally from 17.1% per annum to 17.0% per annum.