Wall Street Turns Cautious After Trade Desk CFO Exit

Trade Desk Inc. (NASDAQ:TTD) stock fell Tuesday following the announcement of a leadership transition at the advertising technology company.

The company announced that Alex Kayyal has been terminated as CFO, effective Jan. 24, after serving in the role for only five months since his appointment on Aug. 21. Tahnil Davis, an 11-year company veteran and former Chief Accounting Officer, will serve as Interim CFO, reporting to CEO and co-founder Jeff Green.

Kayyal’s brief tenure has drawn scrutiny from analysts and investors. LightShed’s Rich Greenfield highlighted concerns on Monday, pointing to a social media post from Kayyal made just five months ago.

The Trade Desk reaffirmed its fourth-quarter 2025 financial guidance, previously issued on Nov. 6, expecting revenue of at least $840 million and adjusted EBITDA of approximately $375 million.

Rosenblatt Cuts Price Forecast

Rosenblatt Securities analyst Barton Crockett reduced his price forecast on TTD from $64 to $53 on Tuesday, citing the surprising CFO termination. “The surprising personnel volatility in this key post for now eviscerates the argument for a valuation premium to growth,” Crockett wrote in a note. The firm maintained its Buy rating, noting the stock still offers upside of over 50%.

Earnings & Analyst Outlook

Investors are looking ahead to the next earnings report on Feb. 25.

• EPS Estimate: $0.50 (Down from $0.59 YoY)
• Revenue Estimate: $841.41 million (Up from $741.01 million YoY)
• Valuation: P/E of 38.4x (Indicates premium valuation)

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price forecast of $67.91. Recent analyst moves include:

• Citigroup: Neutral (Lowers forecast to $38.00) (Jan. 27)
• Truist Securities: Buy (Lowers forecast to $60.00) (Jan. 27)
• Rosenblatt: Buy (Lowers forecast to $53.00) (Jan. 27)

Valuation Insight: While the stock trades at a premium P/E multiple, the strong consensus and 15% expected earnings decline suggest analysts view this growth as justification for the 88% upside to analyst forecasts.

TTD Price Action: Trade Desk shares were down 4.61% at $32.25 at the time of publication on Tuesday. The stock is trading at a new 52-week low, according to Benzinga Pro data. Shares have plunged nearly 73% over the past 12 months.

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