We recently published a list of Why These 15 Software Stocks Are Plunging In 2025. In this article, we are going to take a look at where The Trade Desk Inc (NASDAQ:TTD) stands against other software stocks that are plunging in 2025.
The software sector has been anything but calm lately. These stocks were the darlings of Wall Street for the past few years but are now taking a beating due to tariff-related uncertainty and worries about AI’s lack of profitability.
News headlines have been almost entirely negative in the past two months due to weak macro data and big companies’ disappointing earnings results. This has caused a pivot toward profitability over growth.
Volatility often hides opportunity, and many of these software stocks are now oversold and can rebound when sentiment shifts. As such, it’s worth looking into the stocks that have plunged the most.
Methodology
For this article, I screened the worst-performing software stocks year-to-date.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A large array of computer screens and tech equipment representing the technology company's self-service cloud-based platform.
The Trade Desk Inc (NASDAQ:TTD)
Number of Hedge Fund Holders In Q4 2024: 63
The Trade Desk Inc (NASDAQ:TTD) operates as a technology company that provides a self-service, cloud-based platform.
The stock is down significantly so far in 2025 as its Q4 2024 earnings report missed its own guidance of $758 million. This marked the first time in over eight years as a public company that it fell short of expectations and shook investor confidence.
CEO Jeff Green attributed the miss to “small execution missteps,” including internal restructuring and personnel changes, which disrupted performance.
It posted 22% year-over-year revenue growth and a 44% increase in adjusted EPS. However, the miss triggered a sharp sell-off. The stock plunged immediately following the earnings release. There have also been many lawsuits since.
The consensus price target of $116.41 implies 106.74% upside.
TTD stock is down 52.09% year-to-date.
Overall, TTD ranks 6th on our list of software stocks that are plunging in 2025. While we acknowledge the potential of TTD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TTD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey.
Comments