Trade Desk’s stock melts down as earnings outlook disappoints

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Earnings for latest quarter beat expectations

Trade Desk Inc. shares tanked 28% in after-hours trading Thursday after the advertising-technology company missed the mark with its holiday-quarter forecast, even as results for the latest quarter beat expectations.

Revenue rose to $493 million from $395 million, whereas analysts were looking for $487 million. Revenue growth accelerated to 25% in the third quarter from 23% in the second quarter. “This performance underlines the premium that advertisers are placing on precision, agility and transparency as they seek to maximize returns from their campaigns,” Chief Executive Jeff Green said in a release.

 

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