The Trade Desk Shares Slip After Morgan Stanley Downgrade

The Trade Desk (NASDAQ: TTD) shares opened at $51.55 on September 10, 2025, down about 1.6% from Friday’s close of $52.40.

Morgan Stanley cut its rating on TTD to “equal weight,” citing growing competition in Connected TV (CTV) and concerns about slowing revenue growth.

Market Reaction and Analyst Outlook

Investors reacted to Morgan Stanley’s move by pushing TTD’s price toward its lower support range. The stock traded within a one-standard-deviation range of $50.95 to $53.85, according to Market Chameleon, reflecting a 67% probability of holding within these bounds today. Trading volume reached just 2.1 million shares, well below the 90-day average of 12.2 million, suggesting muted participation amid the downgrade.

Despite the near-term pullback, analysts remain split: 64% of surveyed experts still carry a “Buy” or “Strong Buy” consensus, while the remainder favor a “Hold” or “Sell” stance, pointing to valuation and competitive risks.

Drivers of the Downgrade

  • CTV Headwinds: Morgan Stanley highlighted slower-than-expected growth in TTD’s CTV business, as advertisers cautiously reallocate budgets amid macroeconomic uncertainty.
  • Valuation Pressure: The stock’s forward price-to-sales multiple of 7.9x exceeds industry averages, raising concerns that TTD may be fully priced for perfection.
  • Competitive Landscape: Intensifying rivalry from Amazon’s DSP and Google’s programmatic offerings could erode TTD’s share in key digital-video segments.

Strategic Context

TTD has posted solid revenue growth-up 19% year-over-year to $694 million in Q2-and continues to onboard clients onto its AI-driven Kokai platform. Management’s long-term expansion plans include a push into retail-media partnerships and international markets, which could underpin future gains if execution remains strong.

Technical and Sentiment Indicators

  • Support: $50.95
  • Resistance: $53.85
  • 90-Day Average Volume: 12.2 million shares
  • Current Volume: 2.1 million shares

With trading well below average and a critical support test in play, TTD’s near-term trajectory hinges on renewed buyer interest and any follow-up commentary from analysts on its growth outlook.