Trade Desk (TTD) is on track to finish this year as the worst-performing stock in the S&P 500 Index ($SPX) — and a Jefferies analyst warns that 2026 likely won’t be particularly exciting for the ad tech company, either.
According to James Heaney, TTD shares will face a “double whammy” next year: rising costs and AI threats that make it increasingly difficult to recommend holding them at current levels.
As of this writing, Trade Desk stock is down almost 70% from where it was in early 2025.
Heaney believes Trade Desk must invest aggressively in infrastructure and engineers to remain competitive in the AI era.
However, as its sales are unlikely to grow in tandem, profit margins are likely to contract, making it very difficult for TTD stock to recover in 2026.
Last week, the Jefferies analyst maintained his “Hold” rating on the Nasdaq-listed company, but lowered his price target to $40, indicating less than 10% upside potential from here.
From a technical perspective, Trade Desk is significantly below its major moving averages (MA), reinforcing that the bulls are unlikely to intervene in the near term.
Jefferies also advises caution on Trade Desk stocks, as artificial intelligence could prove a major hurdle for them in the long term.
TTD currently serves as a sophisticated intermediary that helps brands buy advertisements across the Internet.
But as AI tools continue to evolve, they could eventually allow big brands or agencies to buy these ads directly from platforms like Disney (DIS), Netflix (NFLX) or Google (GOOGL) – without the need for a Trade Desk.
And if you think Trade Desk could become obsolete in the next five years because of AI, you shouldn’t pay a premium for its shares today, Heaney told clients in his latest research note.
Other Wall Street analysts disagree with James Heaney on TTD stock, however.
According to Barchart, the consensus rating on Trade Desk stock currently sits at “Moderate Buy,” with an average target of around $62, indicating a potential upside of more than 65% from there.
As of the date of publication, Wajeeh Khan did not have (directly or indirectly) any position in any of the securities mentioned in this article. All information and data contained in this article are for informational purposes only. This article was originally published on Barchart.com
