Trade Desk Inc. (TTD) shares took another beating Tuesday after the advertising technology company dropped a bombshell: it fired its CFO after he'd been in the job for barely five months. Not a great look.
The company announced that Alex Kayyal has been terminated as CFO effective January 24, ending a tenure that started just five months ago on August 21. Stepping into the interim role is Tahnil Davis, who's been with Trade Desk for 11 years and previously served as Chief Accounting Officer. Davis will report directly to CEO and co-founder Jeff Green.
Five months is an unusually short stint for a CFO at a publicly traded company, and analysts are taking notice. LightShed's Rich Greenfield flagged concerns Monday, pointing to a social media post Kayyal made just five months earlier that now reads very differently in hindsight.
For what it's worth, Trade Desk reaffirmed its fourth-quarter 2025 financial guidance that it originally issued back in November. The company still expects revenue of at least $840 million and adjusted EBITDA of around $375 million.
Wall Street Slashes Targets
Rosenblatt Securities analyst Barton Crockett wasted no time adjusting his outlook, slicing his price target from $64 down to $53 on Tuesday. His reasoning? The abrupt CFO departure raises serious questions. "The surprising personnel volatility in this key post for now eviscerates the argument for a valuation premium to growth," Crockett wrote in a research note. Still, the firm kept its Buy rating, noting the stock could still climb more than 50% from current levels.
What's Next for Earnings
Investors will get more clarity when Trade Desk reports earnings on February 25. Here's what Wall Street is expecting:
- EPS Estimate: $0.50 (down from $0.59 year-over-year)
- Revenue Estimate: $841.41 million (up from $741.01 million year-over-year)
- Valuation: P/E ratio of 38.4x, indicating a premium valuation
Analyst Consensus and Recent Downgrades: The stock still carries a Buy rating overall with an average price target of $67.91. But several firms have recently trimmed their outlooks:
- Citigroup: Neutral rating, lowered target to $38.00 (January 27)
- Truist Securities: Buy rating, lowered target to $60.00 (January 27)
- Rosenblatt: Buy rating, lowered target to $53.00 (January 27)
The Valuation Question: Trade Desk trades at a premium P/E multiple even as earnings are expected to decline 15%. The consensus view suggests analysts still believe in the growth story enough to justify an 88% upside to their average price target, but that confidence is clearly being tested.
Price Action: Trade Desk shares were down 4.61% at $32.25 at the time of publication Tuesday, marking a new 52-week low. The stock has cratered nearly 73% over the past 12 months, a brutal stretch for what was once a high-flying growth name.
