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RegExp("[?&]notifications=1(&|#|$)");"desktop"===h&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat(no)),notifLabel:document.querySelector(".".concat(oo))};t.notifDropdown&&mo(e,t)}))}()}};]]>Lawrence Nga, The Motley FoolSat, March 7, 2026 at 11:35 PM GMT+1 4 min readThe Trade Desk (NASDAQ: TTD) did not see its business collapse in 2025. Revenue still grew in the high teens. Customer retention remained above 95%. And the company continued investing heavily in artificial intelligence (AI) and connected TV.Yet the stock price plunged 67.7% in 2025.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »The decline reflected a reset in expectations rather than a complete breakdown in fundamentals. Several forces converged at once, and investors adjusted quickly to the new reality.Image source: Getty Images.Over the years, The Trade Desk has built one of the most consistent track records in digital advertising. The company beat expectations for over 30 consecutive quarters. That reliability fueled investors' expectations that the future would likely remain the same.So, when the streak ended in late 2024, investor psychology shifted. Even though growth remained solid in 2025, the perception of near-perfect execution disappeared. So investors recalibrated.Historically a high-multiple stock, The Trade Desk's valuation subsequently compressed to reflect the new environment's weaker predictability. As of this writing, the stock still trades at a price-to-earnings (P/E) ratio of 30 times even after the massive share-price drawdown.To be fair, the business did not deteriorate that dramatically, at least not yet. The narrative did. Add that to the nose-bleed valuation, and it's not surprising the stock price reverted massively lower.At the same time, competitive pressure increased. Amazon expanded aggressively in advertising. Its demand-side platform gained momentum, and its partnerships with the likes of Netflix strengthened its connected TV position. Amazon combines retail data, inventory, and measurement into a single ecosystem, appealing to performance-focused advertisers. Alphabet's Google and Meta Platforms also embedded AI more deeply into their advertising stacks. Both companies control massive first-party data ecosystems and have improved optimization tools throughout 2025.Unsurprisingly, investors began questioning whether The Trade Desk could maintain clear differentiation in a market increasingly dominated by vertically integrated platforms.Don't get me wrong. The company still operates in a large and growing industry. But the competitive landscape now looks tougher than it did a few years ago.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,740.02 -90.69 (-1.33%)Dow 3047,501.55 -453.19 (-0.95%)Nasdaq22,387.68 -361.31 (-1.59%)Russell 20002,525.30 -60.27 (-2.33%)VIX29.49 +5.74 (+24.17%)Gold5,158.70 +80.00 (+1.58%)Trending tickersBTC-USD Bitcoin USD 67,294.47 -997.95 (-1.46%)HIMS Hims & Hers Health, Inc. 15.74 -0.14 (-0.88%)ETH-USD Ethereum USD 1,967.96 -17.04 (-0.86%)XRP-USD XRP USD 1.35 -0.01 (-0.98%)BTC-CAD Bitcoin CAD 91,369.06 -1,354.98 (-1.46%)PortfolioSign in to access your portfolioSign inTop gainersDAWN Day One Biopharmaceuticals, Inc. 21.20 +8.42 (+65.88%)IOT Samsara Inc. 35.36 +5.78 (+19.54%)MRVL Marvell Technology, Inc. 89.57 +13.89 (+18.35%)EMAT Evolution Metals & Technologies Corp. 9.76 +1.25 (+14.69%)IOVA Iovance Biotherapeutics, Inc. 5.13 +0.55 (+12.01%)Top losersINGM Ingram Micro Holding Corporation 22.06 -4.30 (-16.31%)BE Bloom Energy Corporation 135.19 -24.80 (-15.50%)GAP The Gap, Inc. 23.28 -3.92 (-14.41%)LITE Lumentum Holdings Inc. 558.44 -92.38 (-14.19%)JEF Jefferies Financial Group Inc. 38.29 -5.99 (-13.53%)Most activeNVDA NVIDIA Corporation 177.82 -5.52 (-3.01%)ONDS Ondas Inc. 9.83 -0.63 (-6.05%)AAL American Airlines Group Inc. 11.18 -0.61 (-5.17%)MRVL Marvell Technology, Inc. 89.57 +13.89 (+18.35%)BBD Banco Bradesco S.A. 3.6800 -0.0600 (-1.60%)Top economic eventsEarnings eventsMy earnings eventsEarnings events