03:45 PM EDT, 08/08/2025 (MT Newswires) -- Trade Desk's ( TTD ) latest financial outlook suggests a slowdown in underlying growth, making it even more difficult to downplay recent concerns around the business, BofA Securities said Friday.

On Thursday, the ad-buying software maker said it expected third-quarter revenue of at least $717 million. Analysts polled by FactSet are looking for $718.6 million.

The guidance implies a deceleration in underlying growth and makes it harder to dismiss recent concerns around competitive pressures, execution and the company's ability to sustain long-term growth as a one-off event, BofA analyst Jessica Reif Ehrlich said in a Friday note to clients.

This especially holds true against the backdrop of "robust advertising growth being reported by many of the largest walled gardens," Ehrlich wrote. "While we continue to believe (Trade Desk ( TTD )) can be a double-digit topline grower, we believe it is challenging to justify the premium multiple it has historically received."

BofA downgraded its rating on the company's stock to underperform from buy and slashed its price objective to $55 from $130. "When comparing (the company) to more traditional ad-tech peers, we see potential downside to current levels," the brokerage said.

Trade Desk ( TTD ) shares were down 37% in Friday late-afternoon trade. The stock has lost 53% in value so far in 2025.

The third-quarter outlook assumes that the macro backdrop remains "stable and we don't see disruptions from large global brands, which make up a significant portion of our business, due to tariff uncertainty," Chief Financial Officer Laura Schenkein said on Thursday's earnings call with analysts, according to a FactSet transcript.

BofA reduced its 2025 and 2026 revenue and adjusted earnings before interest, taxes, depreciation, and amortization guidance for Trade Desk ( TTD ). "Short-term risks are outweighing longer-term opportunities, in our view," Ehrlich said. "We believe it is prudent to reassess our growth expectations until greater evidence of reacceleration emerges."

On Thursday, Trade Desk ( TTD ) said it has appointed Alex Kayyal as CFO, effective Aug. 21, replacing Schenkein, who will remain with the company as a nonexecutive officer through the end of the year.

The company reported a 19% year-over-year revenue growth for the June quarter to $694 million, ahead of analysts' $685.5 million view. Adjusted earnings rose to $0.41 a share from $0.39 a year earlier, in line with market expectations.

Price: 55.56, Change: -32.78, Percent Change: -37.11