In 2024, shareholders of The Trade Desk (NASDAQ: TTD) made out handsomely. The advertising technology stock achieved a return of over 63%. However, things have been far from peachy in 2025. The stock price is down nearly 36% so far this year as of the Feb. 20 close, led by a 32% drop after it released earnings on Feb. 12.
As a result of the poor performance in 2025, The Trade Desk’s value is now slightly lower than it was three years ago. However, total 2024 revenues are 54% higher than total revenues in 2022. Full-year adjusted earnings per share (EPS) is 60% higher, and free cash flow is up 38%. This begs the question: are markets significantly undervaluing this stock that has improved financial performance so drastically in three years?
