Crowded DSP Market Pressures The Trade Desk, Inc. (TTD), Says Guggenheim

The Trade Desk, Inc. (NASDAQ: TTD ) is among the overlooked AI stocks to buy now . On September 30, 2025, Guggenheim reiterated its ‘Buy’ rating on The Trade Desk, Inc. (NASDAQ:TTD), while cutting the price target to $55.00 from $75.00. This revision stemmed from the intensifying competition, primarily driven by Amazon’s demand-side platform (DSP).

2025 is the year of transition, the analyst noted, emphasizing the company’s launch of its Kokai platform, double-digit headcount growth, and new leadership, featuring COO Vivek Kundra and CFO Alex Kayyal. Although there are concerns about the crowded DSP market, the firm believes this will continue to influence overall sentiment until The Trade Desk, Inc. (NASDAQ:TTD) reinvigorates growth. The company’s growth should pick up after Q2 2026, according to the analyst.

Guggenheim based its positive stance on the increased adoption of programmatic advertising on connected TV platforms, anticipated $40 million in political advertising contributions, and developments in audio monetization syncing with Spotify commentary.

The Trade Desk, Inc. (NASDAQ:TTD) is a California-based technology company offering a self-service cloud-based ad-buying platform, data, and other value-added services. Incorporated in 2009, the company is committed to transforming media by enhancing the relevance of advertising for consumers.

While we acknowledge the potential of TTD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock .

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money .

Disclosure: None.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money .

Disclosure: None.

During that time, costs and expenses almost kept pace with revenue growth. Additionally, a much higher income tax expense resulted in $141 million in net income for the first half of the year, rising 21% yearly.

Indeed, the projected revenue increase of 14% for Q3 is down from prior quarters and could point to continued struggles with the platform. Nonetheless, analyst estimates point to 17% revenue growth in both 2025 and 2026, indicating the company has offered overly conservative guidance. Also, the aforementioned 60% decline in the stock price likely prices in the slowing revenue growth.

Still, the lower stock price has probably helped abate prior concerns about The Trade Desk's valuation. Although its 56 P/E ratio may seem high, it is down from 150 at the beginning of the year, placing its earnings multiple at a multiyear low. Moreover, with rising earnings pushing its forward P/E ratio down to 26, one could argue The Trade Desk is falling into value stock territory.

Given The Trade Desk's valuation and the opportunity in the digital ad market, the stock looks increasingly like a buy.

Admittedly, the market had likely overvalued The Trade Desk stock at the beginning of the year. As a stock priced for perfection, it had nowhere to go but down as it missed a revenue target in Q4 and dealt with customer dissatisfaction over the Kokai rollout.

Nonetheless, The Trade Desk still stands at the forefront of an opportunity in the digital ad market. As it continues to address some of the competitive and operational concerns, its low valuation and continued growth appear to have made this stock a more compelling buy.

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 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 $652,872 !* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,092,280 !*

Now, it’s worth noting Stock Advisor’s total average return is 1,062 % — a market-crushing outperformance compared to 189% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor .

See the 10 stocks »

*Stock Advisor returns as of September 22, 2025

Will Healy has positions in The Trade Desk. The Motley Fool has positions in and recommends Alphabet, Amazon, and The Trade Desk. The Motley Fool has a disclosure policy .

I Think Everyone's Wrong About The Trade Desk Stock, and Here's Why was originally published by The Motley Fool