This article first appeared on GuruFocus.
The Trade Desk (NASDAQ:TTD) shares fell 4% in premarket trading Tuesday after Arete Research downgraded the digital advertising technology company to Sell from Neutral and issued a price target implying roughly 37% downside.
The Trade Desk (NASDAQ:TTD) faces increasing competitive pressure as advertising agencies appear to be shifting more spending toward rival demand-side platforms, Arete said. The firm also pointed to broader market share gains by competing advertising technology providers as a key factor behind its more cautious outlook.
The downgrade follows another recent bearish call after Rothschild Redburn initiated coverage with a Sell rating, also citing intensifying competition. The Trade Desk (NASDAQ:TTD) has additionally lost its exclusive retail media arrangement with Walmart (NASDAQ:WMT), allowing advertisers to access Walmart inventory through alternative platforms, including Alphabet (GOOGL)’s DV360, Magnite (MGNI) and Yahoo’s DSP.
