The Trade Desk’s 70% Stock Plunge Draws Bold Bets from Major Investors

A 70% crash hasn’t scared off Wall Street’s heavyweights. With earnings beating forecasts and a $500M buyback, is this the bottom—or a trap?

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2026 January 2 . 1:02 PM

1 min read

In the picture we can see a woman standing and talking in the microphone on the desk in front of... — In the picture we can see a woman standing and talking in the microphone on the desk in front of the desk, we can see a blue colored cloth with something written on it and in the background we can see a wall with some board and some advertisement on it.

The Trade Desk’s 70% Stock Plunge Draws Bold Bets from Major Investors

The Trade Desk has faced a steep decline in 2025, with its stock losing around 70% of its value. Despite this drop, some major investors have been buying more shares, including Capital One, which boosted its stake by over 317%.

The company’s latest financial results came in slightly above expectations. Earnings per share reached $0.45, while revenue grew by 17.7% year-over-year to $739.4 million. Yet the stock’s sharp fall has pushed its market capitalisation down to roughly $18.4 billion, with shares trading near $38.

Analyst sentiment remains mixed but leans positive. Out of 36 firms covering the stock, 21 rate it a 'Buy', 12 suggest 'Hold', and only 3 recommend 'Sell'. Meanwhile, the board has approved a $500 million share buyback program, representing about 2.1% of outstanding shares at current prices. Institutional investors like Sound Income Strategies LLC and West Oak Capital LLC have also been increasing their positions. Their purchases coincide with the stock trading well below its 50-day and 200-day moving averages, reflecting its steep decline this year.

The Trade Desk’s stock rout has not deterred all investors, with some seizing the opportunity to expand holdings. The company’s recent buyback plan and better-than-expected earnings add context to the ongoing market activity. Shares remain under pressure, but institutional interest suggests confidence in long-term prospects.