The Trade Desk stock price target cut by Citizens JMP on ad spend concerns

Investing.com - Citizens JMP lowered its price target on The Trade Desk (NASDAQ:TTD) to $60.00 from $100.00 on Tuesday, while maintaining a Market Outperform rating on the advertising technology company. According to InvestingPro data, TTD currently trades at a P/E ratio of 33.76 with a market capitalization of $2.37 trillion, reflecting its significant presence in the digital advertising space.

The firm cited mounting near-term headwinds, including a slowdown in advertising spending across consumer packaged goods and automotive sectors, along with potential regulatory impacts following the Trump administration’s memorandum on stricter guidelines for direct-to-consumer healthcare advertising.

These verticals collectively represent approximately 41% of The Trade Desk’s spend, which Citizens JMP noted limits growth visibility in the near term.

Despite the price target reduction, Citizens JMP continues to view The Trade Desk’s independence and scale as key differentiators that enable it to gain trust from the world’s largest advertisers and forge unique data partnerships.

The firm also highlighted several ongoing long-term growth drivers for the company, including connected TV, retail media, international expansion, Kokai, UID2, and OpenPath, while noting that a favorable remedy in Google’s ad tech trial could create a more level playing field for the open web.

In other recent news, Amazon has agreed to a $2.5 billion settlement with the Federal Trade Commission over its Prime subscription practices. The settlement includes a $1 billion civil penalty and $1.5 billion in consumer refunds, affecting approximately 35 million people. On the financial front, Mizuho initiated coverage on Amazon with an Outperform rating, citing expectations for Amazon Web Services (AWS) growth to accelerate to 22% by 2026. In addition, TD Cowen reiterated a Buy rating for Amazon, highlighting new generative AI tools introduced at the company’s recent seller conference.

In regulatory developments, Zoox, Amazon’s autonomous-vehicle subsidiary, is seeking exemptions from U.S. regulators to operate self-driving cars without traditional driving controls. Amazon is also expanding its logistics network to support merchants on platforms like Walmart and Shopify, enhancing its Multi-Channel Fulfillment service. These initiatives were announced at Amazon’s Accelerate seller conference, which also showcased AI-powered tools aimed at improving ad creation for merchants.

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