Analysis of Declining Stocks: C3.ai and The Trade Desk
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 30 2026
0mins
Source: Fool
- C3.ai Performance Decline: C3.ai's stock has plummeted 61% over the past year, with total revenue declining by 20% to $145.4 million for the six months ending October 31, 2025, indicating a lack of growth in the AI sector that undermines investor confidence.
- Management Changes Impact: The recent CEO transition from founder Thomas Siebel to Stephen Ehikian raises concerns about stability, potentially exacerbating market worries about the company's future performance and leading to continued stock pressure.
- The Trade Desk Competitive Challenges: The Trade Desk's stock has fallen 72% in the past year, as clients may cut ad spending amid growing economic uncertainty, further impacting the company's revenue and market share.
- Declining Growth Rate Risks: The Trade Desk's growth rate has decreased from 27% to 18%, which, in the context of its high valuation, may lead investors to question its future profitability, especially with frequent management changes eroding market confidence.
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Analyst Views on TTD
Wall Street analysts forecast TTD stock price to rise
25 Analyst Rating
15 Buy
9 Hold
1 Sell
Moderate Buy
Current: 26.140
Low
39.00
Averages
59.68
High
90.00
Current: 26.140
Low
39.00
Averages
59.68
High
90.00
About TTD
The Trade Desk, Inc. is a global advertising technology company. The Company offers a self-service, cloud-based ad-buying platform that empowers its clients to plan, manage, optimize and measure more expressive data-driven digital advertising campaigns. Its platform allows clients to execute integrated campaigns across ad formats and channels, including connected television (CTV) and other video, display, audio, and native, on a multitude of devices, such as televisions, streaming devices, mobile devices, computers and digital-out-of-home devices. Its platform’s integrations with inventory, publisher and data partners provide ad buyers reach and decisioning capabilities, and its enterprise application programming interfaces (APIs) enable its clients to customize and expand platform functionality. Its platform provides auto-optimization features that allow buyers to automate their campaigns and support them with computer-generated modeling and decision-making.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Investment Opportunities Amid Market Weakness
- Microsoft's Value Rebound: Microsoft's operating profit valuation is nearing its lowest level outside of the 2023 sell-off, and despite recent weakness, its strong growth in the latest earnings report highlights a rare buying opportunity for investors.
- Trade Desk's Slowing Growth: The Trade Desk reported an 18% year-over-year growth in Q3, facing challenges due to reduced political ad spending; however, with a projected 17% revenue growth for 2026, its current low valuation presents a compelling entry point for investors.
- Nvidia's Undervalued Stock: Nvidia trades at a mere 24 times forward earnings, despite a projected 64% growth in FY 2027, and with global data center capital expenditures potentially reaching $3 trillion to $4 trillion by 2030, investors should seize this undervalued opportunity.
- Sustained AI Spending Growth: As AI spending is expected to continue increasing over the next few years, Nvidia stands out as a must-buy stock in the current market environment, making it essential for investors not to miss this opportunity.
See More
Microsoft Stock Hits Low Valuation Amid Market Weakness
- Microsoft Valuation Drop: Microsoft's price-to-earnings ratio has fallen to its lowest level outside of the 2023 sell-off, while still maintaining a dominant industry position, and recent earnings reports indicate growth potential, making this a rare buying opportunity for investors.
- Ad Platform Challenges: The Trade Desk reported an 18% year-over-year growth in Q3, but faced headwinds from reduced political ad spending, with a projected 17% revenue growth for 2026, indicating its long-term growth potential remains intact.
- Nvidia Investment Opportunity: Nvidia's stock is currently trading at a mere 24 times forward earnings, despite being projected to grow at a 64% pace in FY 2027, highlighting its investment value amid ongoing increases in AI spending.
- Market Rebound Potential: The recent weakness in the stock market has opened up buying opportunities for investors, particularly in stocks like Microsoft, The Trade Desk, and Nvidia, which could yield outsized returns in the future, prompting investors to act swiftly to capitalize on these opportunities.
See More
Three Resilient Stocks to Consider
- Qualcomm's Market Performance: Qualcomm (QCOM) has seen a 23% decline in its stock price since early January; however, despite challenges from memory chip shortages, demand for its high-performance processors remains strong, and as memory manufacturers recover, Qualcomm is expected to increase shipments, improving market performance.
- Remitly's Growth Potential: Remitly Global (RELY) successfully facilitated $19.5 billion in transfers in Q3 last year, a 35% year-over-year increase, generating $419.5 million in revenue with EBITDA of $61.2 million, up 29%, and analysts expect this growth momentum to continue through 2028, showcasing its strong competitive position in the international payments market.
- The Trade Desk's Value Recovery: The Trade Desk (TTD) has been impacted by the overall market downturn, but its revenue is projected to grow by 16% in 2023, with a current P/E ratio of only 12 times, indicating investment value, as the market has yet to recognize its necessity.
- Market Environment Challenges: While the overall market faces uncertainty, stocks like Qualcomm, Remitly, and The Trade Desk demonstrate strong resilience, suggesting that investors may consider these potential stocks for long-term gains amid market volatility.
See More
The Trade Desk Stock Plummets but Remains Undervalued
- Significant Stock Decline: The Trade Desk's stock has plummeted 81% from its record high, currently trading at $27, yet Wall Street analysts view it as deeply undervalued with a median target price of $50, indicating an 85% upside potential.
- Advantage of Independent Business Model: As a demand-side platform (DSP), The Trade Desk's independence helps it avoid conflicts of interest associated with media ownership, encouraging more publishers to share data, which enhances the effectiveness of its advertising measurement tools, particularly in the open internet advertising space.
- Increased Competitive Pressure: While The Trade Desk shows strong performance in connected TV and off-site retail advertising, its third-quarter revenue growth of 18% pales in comparison to competitors like Amazon and Meta, which reported growth rates of 24% and 26%, respectively, indicating market share pressures.
- Future Growth Expectations: Although analysts anticipate The Trade Desk's adjusted earnings to grow at 15% annually through 2027, the rise of generative AI tools is expected to slow open internet ad spending from 25% in 2024 to 5% by 2028, potentially impacting its long-term growth prospects.
See More
Discussion on Potential Merger Between SpaceX and xAI
- Merger Prospects: The potential merger between SpaceX and xAI has garnered market attention, particularly with SpaceX's anticipated IPO in 2026, as this merger could attract investor interest and enhance the IPO's appeal.
- Capital Market Competition: Currently, companies like OpenAI and Anthropic are also vying for entry into the capital markets, highlighting the fierce competition among large capital-intensive firms for IPOs, and the merger of SpaceX and xAI could enhance their market attractiveness in this context.
- Investor Confidence: Although the market remains cautious about mergers involving Elon Musk's companies, analysts believe that such a merger could provide these firms with greater resource and capital liquidity, helping them achieve better valuations ahead of their IPOs.
- Technological Integration Potential: If SpaceX and xAI successfully merge, it could create a powerful technological ecosystem that leverages AI to enhance innovation in aerospace and transportation, thereby gaining a competitive edge in future market dynamics.
See More
The Trade Desk: A Value Investment Opportunity
- Market Share Competition: Although Amazon has captured some market share in the advertising space, The Trade Desk remains a top partner, demonstrating its ability to maintain stability in a highly competitive environment.
- Growth Potential: The Trade Desk's revenue rose 18% last quarter, which, while slower than previous growth rates, still exceeds the market's average annual return of 10%, with a projected 16% revenue growth for 2026, continuing to outperform the market.
- Valuation Appeal: The Trade Desk's stock trades at a dirt-cheap 13 times forward earnings, compared to the S&P 500's 22.2 times, highlighting its value investment potential as a growth stock, attracting investors seeking undervalued opportunities.
- Investment Recommendation: Despite not being included in Motley Fool's current best stock picks, The Trade Desk's ongoing growth in the advertising market and low valuation make it a potential choice for investors looking to outperform the S&P 500 in 2026.
See More
Investment Opportunities Amid Market Weakness
- Microsoft's Value Rebound: Microsoft's operating profit valuation is nearing its lowest level outside of the 2023 sell-off, and despite recent weakness, its strong growth in the latest earnings report highlights a rare buying opportunity for investors.
- Trade Desk's Slowing Growth: The Trade Desk reported an 18% year-over-year growth in Q3, facing challenges due to reduced political ad spending; however, with a projected 17% revenue growth for 2026, its current low valuation presents a compelling entry point for investors.
- Nvidia's Undervalued Stock: Nvidia trades at a mere 24 times forward earnings, despite a projected 64% growth in FY 2027, and with global data center capital expenditures potentially reaching $3 trillion to $4 trillion by 2030, investors should seize this undervalued opportunity.
- Sustained AI Spending Growth: As AI spending is expected to continue increasing over the next few years, Nvidia stands out as a must-buy stock in the current market environment, making it essential for investors not to miss this opportunity.
See More
Microsoft Stock Hits Low Valuation Amid Market Weakness
- Microsoft Valuation Drop: Microsoft's price-to-earnings ratio has fallen to its lowest level outside of the 2023 sell-off, while still maintaining a dominant industry position, and recent earnings reports indicate growth potential, making this a rare buying opportunity for investors.
- Ad Platform Challenges: The Trade Desk reported an 18% year-over-year growth in Q3, but faced headwinds from reduced political ad spending, with a projected 17% revenue growth for 2026, indicating its long-term growth potential remains intact.
- Nvidia Investment Opportunity: Nvidia's stock is currently trading at a mere 24 times forward earnings, despite being projected to grow at a 64% pace in FY 2027, highlighting its investment value amid ongoing increases in AI spending.
- Market Rebound Potential: The recent weakness in the stock market has opened up buying opportunities for investors, particularly in stocks like Microsoft, The Trade Desk, and Nvidia, which could yield outsized returns in the future, prompting investors to act swiftly to capitalize on these opportunities.
See More
Three Resilient Stocks to Consider
- Qualcomm's Market Performance: Qualcomm (QCOM) has seen a 23% decline in its stock price since early January; however, despite challenges from memory chip shortages, demand for its high-performance processors remains strong, and as memory manufacturers recover, Qualcomm is expected to increase shipments, improving market performance.
- Remitly's Growth Potential: Remitly Global (RELY) successfully facilitated $19.5 billion in transfers in Q3 last year, a 35% year-over-year increase, generating $419.5 million in revenue with EBITDA of $61.2 million, up 29%, and analysts expect this growth momentum to continue through 2028, showcasing its strong competitive position in the international payments market.
- The Trade Desk's Value Recovery: The Trade Desk (TTD) has been impacted by the overall market downturn, but its revenue is projected to grow by 16% in 2023, with a current P/E ratio of only 12 times, indicating investment value, as the market has yet to recognize its necessity.
- Market Environment Challenges: While the overall market faces uncertainty, stocks like Qualcomm, Remitly, and The Trade Desk demonstrate strong resilience, suggesting that investors may consider these potential stocks for long-term gains amid market volatility.
See More
The Trade Desk Stock Plummets but Remains Undervalued
- Significant Stock Decline: The Trade Desk's stock has plummeted 81% from its record high, currently trading at $27, yet Wall Street analysts view it as deeply undervalued with a median target price of $50, indicating an 85% upside potential.
- Advantage of Independent Business Model: As a demand-side platform (DSP), The Trade Desk's independence helps it avoid conflicts of interest associated with media ownership, encouraging more publishers to share data, which enhances the effectiveness of its advertising measurement tools, particularly in the open internet advertising space.
- Increased Competitive Pressure: While The Trade Desk shows strong performance in connected TV and off-site retail advertising, its third-quarter revenue growth of 18% pales in comparison to competitors like Amazon and Meta, which reported growth rates of 24% and 26%, respectively, indicating market share pressures.
- Future Growth Expectations: Although analysts anticipate The Trade Desk's adjusted earnings to grow at 15% annually through 2027, the rise of generative AI tools is expected to slow open internet ad spending from 25% in 2024 to 5% by 2028, potentially impacting its long-term growth prospects.
See More
Discussion on Potential Merger Between SpaceX and xAI
- Merger Prospects: The potential merger between SpaceX and xAI has garnered market attention, particularly with SpaceX's anticipated IPO in 2026, as this merger could attract investor interest and enhance the IPO's appeal.
- Capital Market Competition: Currently, companies like OpenAI and Anthropic are also vying for entry into the capital markets, highlighting the fierce competition among large capital-intensive firms for IPOs, and the merger of SpaceX and xAI could enhance their market attractiveness in this context.
- Investor Confidence: Although the market remains cautious about mergers involving Elon Musk's companies, analysts believe that such a merger could provide these firms with greater resource and capital liquidity, helping them achieve better valuations ahead of their IPOs.
- Technological Integration Potential: If SpaceX and xAI successfully merge, it could create a powerful technological ecosystem that leverages AI to enhance innovation in aerospace and transportation, thereby gaining a competitive edge in future market dynamics.
See More
The Trade Desk: A Value Investment Opportunity
- Market Share Competition: Although Amazon has captured some market share in the advertising space, The Trade Desk remains a top partner, demonstrating its ability to maintain stability in a highly competitive environment.
- Growth Potential: The Trade Desk's revenue rose 18% last quarter, which, while slower than previous growth rates, still exceeds the market's average annual return of 10%, with a projected 16% revenue growth for 2026, continuing to outperform the market.
- Valuation Appeal: The Trade Desk's stock trades at a dirt-cheap 13 times forward earnings, compared to the S&P 500's 22.2 times, highlighting its value investment potential as a growth stock, attracting investors seeking undervalued opportunities.
- Investment Recommendation: Despite not being included in Motley Fool's current best stock picks, The Trade Desk's ongoing growth in the advertising market and low valuation make it a potential choice for investors looking to outperform the S&P 500 in 2026.
See More
