Down 75% in the Past Year, Has The Trade Desk Stock Become a Bargain Buy?

Down 75% in the Past Year, Has The Trade Desk Stock Become a Bargain Buy?

David Jagielski, CPA, The Motley Fool

Tue, August 11, 2026 at 8:35 PM GMT+3 3 min read

• TTD -0.52%
• NVDA +3.03%

Shares of The Trade Desk (NASDAQ: TTD) have been in a downward spiral for over a year, as concerns about slowing demand and artificial intelligence (AI) disrupting its operations have sent investors for the exits. In just the past 12 months, the stock has crashed an incredible 75%.

Is the stock headed for even more of a decline, or could now be a good time to buy it while its value is so low?

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »

A poor Q2 performance sends the stock to new lows

Last week, Trade Desk reported its second-quarter results for the period ending June 30. Not only did the adtech company generate just a modest 3% growth, but its numbers came in significantly below expectations. Revenue of $715 million was nowhere near the $752.6 million analysts expected, highlighting the growing challenges it's facing in the market.

Trade Desk's growth may be underwhelming, but the business itself remains profitable. Operating income totaled $101.6 million last quarter, which was a 13% decrease from the prior-year period. It's disappointing, but not awful.

However, there's greater competition in the space due to AI, and AI-powered search also creates new challenges: internet users now rely more heavily on chatbots for answers rather than visiting websites, which may impact The Trade Desk's long-term growth prospects.

It wasn't all bad news for the company this past quarter, as The Trade Desk highlighted an important metric in Q2: 95% customer retention. That's a good sign that its customers continue to see value from the company's offerings, but they may not be ramping up their spending. That may be due to AI, but also broader economic uncertainty and challenges.

There was, unfortunately, much more bad than good this past quarter, resulting in shares of Trade Desk hitting new 52-week lows recently.

Is Trade Desk stock worth taking a chance on right now?

The Trade Desk stock has taken such a beating over the past year that it now trades at a lowly 12 times expected future earnings (based on analyst expectations). While that is light, it's hard to make the case for buying the troubled stock amid so much uncertainty ahead. Without a catalyst or reason to suggest that it can turn things around, the stock may end up only going lower in the weeks and months ahead.

Taking a wait-and-see approach with Trade Desk may be most appropriate right now, as it's looking more like a value trap than a good buy, given all the uncertainty around its operations these days.

Should you buy stock in The Trade Desk right now?

Before you buy stock in The Trade Desk, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and The Trade Desk wasn't one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,335,252!*

That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul.

See the 10 stocks »

*Stock Advisor returns as of August 11, 2026.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends The Trade Desk. The Motley Fool has a disclosure policy.

Down 75% in the Past Year, Has The Trade Desk Stock Become a Bargain Buy? was originally published by The Motley Fool