The Trade Desk (TTD) Slid on Investors’ Concerns

Brown Advisory, an investment management company, released its “Brown Advisory Large-Cap Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy returned -0.88% (net) during the third quarter, underperforming the benchmark, the Russell 1000 Growth Index. Even though the portfolio has significant exposure to AI, its underweight to the most speculative momentum-driven parts of the trade was a headwind to performance. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Brown Advisory Large-Cap Growth Strategy highlighted stocks such as The Trade Desk, Inc. (NASDAQ:TTD). Headquartered in Ventura, California, The Trade Desk, Inc. (NASDAQ:TTD) is a technology company that offers a self-service cloud-based ad-buying platform. The one-month return of The Trade Desk, Inc. (NASDAQ:TTD) was -16.25%, and its shares lost 71.36% of their value over the last 52 weeks. On December 02, 2025, The Trade Desk, Inc. (NASDAQ:TTD) stock closed at $39.95 per share, with a market capitalization of $19.533 billion.

Brown Advisory Large-Cap Growth Strategy stated the following regarding The Trade Desk, Inc. (NASDAQ:TTD) in its third quarter 2025 investor letter:

“The Trade Desk, Inc. (NASDAQ:TTD), one of the largest independent demand-side advertising platforms globally, reported quarterly results that were slightly ahead of consensus. However, third-quarter guidance came in line with consensus expectations, disappointing investors—especially in contrast to strong results from peers like Meta, Google, and Amazon. Early-year performance was impacted by a sales reorganization and slower-than-consensus expected adoption of its new AI-powered platform, Kokai. The company has since transitioned 75% of its customers to Kokai, with full adoption expected by year-end. Customers using Kokai are seeing improved return on investment (ROI) through deeper data integration, driving increased ad spend. We believe The Trade Desk remains well-positioned for long-term growth in digital advertising.”

The Trade Desk, Inc. (NASDAQ:TTD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held The Trade Desk, Inc. (NASDAQ:TTD) at the end of the third quarter, which was 60 in the previous quarter. In the third quarter of 2025, The Trade Desk, Inc. (NASDAQ:TTD) reported revenue of $739 million, representing an 18% year-over-year growth. While we acknowledge the potential of The Trade Desk, Inc. (NASDAQ:TTD) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.