The Trade Desk (TTD) stock tanked on Friday after the advertising technology company posted a weak Q2 and issued broadly disappointing guidance for its current financial quarter. Still, Citi analysts led by Ygal Arounian believe TTD could tumble further through the remainder of 2026.
In a research note this morning, Arounian downgraded the ad-tech firm to “Sell” with an $11 price target indicating potential for another 27% downside from current levels.
Year-to-date, Trade Desk shares are down nearly 65% at the time of writing.
Why Citi Downgraded Trade Desk Stock
In the earnings release, CEO Jeff Green admitted that Q2 failed to meet internal execution standards, pointing to macroeconomic pressures and cautious spending by major brands.
As corporate marketing budgets tighten, advertisers are moving away from open-web programmatic auctions toward cheaper, fixed-price programmatic guaranteed deals.
This structural shift directly undercuts Trade Desk's core revenue engine, which is primarily built around programmatic ad buying through its demand-side platform (DSP).
Against such a challenging backdrop, Arounian said it’s increasingly difficult to recommend owning TTD shares for the back half of 2026.
TTD Shares Aren’t Worth Buying on the Dip
Beyond macro challenges, the Citi analyst highlighted internal execution concerns and lackluster forward guidance for its bearish view on Trade Desk shares.
Management now expects adjusted EBITDA to print at $160 million in the current fiscal quarter — miles below the $339.6 million that analysts had called for.
This means TTD faces prolonged operational friction and elevated risk of market share loss to rival platforms over the next 12 months, Arounian told clients.
Investors should also note that Barchart also currently holds a rather alarming “100% SELL” opinion on Trade Desk, indicating technical momentum favors continued downside as well.
How Wall Street Recommends Playing Trade Desk
Heading into the Q2 release, Wall Street had a consensus “Moderate Buy” rating on TTD stock, with a mean price target of just under $26, indicating massive upside from its previous close.
However, investors are advised to exercise caution in buying the post-earnings dip in Trade Desk since more downward revisions like Citi’s could now follow in the days ahead.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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