Trade Desk signals cautious ad spending with downbeat revenue forecast, shares tumble (updated)
07/05/2026 21:52
Updates shares, adds details throughout May 7 (Reuters) - Ad-tech firm Trade Desk Inc TTD.O forecast second-quarter revenue below Wall Street estimates on Thursday, as advertisers turn more cautious with their budgets in an uncertain macroeconomic environment. Shares of the company fell more than 14% in extended trading. Trade Desk, a market leader, is grappling with companies reining in marketing expenditures, as well as a highly competitive landscape. Large technology platforms and emerging retail media networks are all vying for a larger piece of the digital advertising pie. Amazon's AMZN.O ad-buying platform, in particular, has emerged as a powerful rival, backed by its vast pool of shopper data. The company expects second-quarter revenue of at least $750 million, compared with estimates of $771.3 million, according to data compiled by LSEG. The ad-tech firm reported revenue of $688.9 million for the first quarter ended March 31, beating an estimate of $679.2 million. The company reported earnings per share of 8 cents, compared with a profit of 10 cents per share, a year ago. In March, French ad giant Publicis Groupe PUBP.PA advised its clients against using Trade Desk's platform for digital media buying following an audit. (Reporting by Juby Babu in Mexico City and Zaheer Kachwala in Bengaluru; Editing by Sriraj Kalluvila) ((Juby.Babu@thomsonreuters.com;))