A Contrarian Bet: Cathie Wood’s ARK Invest Buys The Trade Desk Dip

The Trade Desk US88339J1051

While most investors have been fleeing, one prominent figure is moving in the opposite direction. Cathie Wood's ARK Invest made a significant purchase of The Trade Desk shares last week, acquiring a stake worth approximately $7.9 million as the stock traded near its 52-week lows. This bold move comes after a disastrous period for the programmatic advertising platform, whose share price has collapsed by more than 70%.

Regulatory filings reveal that ARK's exchange-traded funds purchased 204,354 shares of The Trade Desk. The transaction was executed when the equity was hovering close to its annual low, signaling Wood's characteristic contrarian approach. Known for targeting high-growth technology companies during periods of market pessimism, her investment acts as a public declaration that the current valuation fails to reflect the firm's long-term potential.

The market now watches to see if other institutional players will follow this lead. Until now, selling pressure has dominated, fueled primarily by concerns over decelerating growth and intensifying competitive threats.

Fundamental Headwinds: Growth Deceleration and Rivalry

The core reason behind the stock's severe de-rating is a palpable slowdown in revenue expansion. For the third quarter of 2025, The Trade Desk reported revenue of $739 million, representing year-over-year growth of 18%. This marks a sobering shift for a company once celebrated for delivering substantially higher expansion rates.

Competition presents another major challenge. Amazon is aggressively expanding its presence in the Demand-Side Platform (DSP) arena, leveraging its vast data ecosystem. The direct threat from this industry titan has significantly dampened market sentiment surrounding The Trade Desk. Investors are clearly no longer willing to award premium valuation multiples to a business exhibiting slower growth.

Technical Picture Shows a Stock Under Pressure

Despite a minor rally on Friday, the technical outlook remains fragile. The shares are trading well below their key moving averages, firmly positioned within a defined downtrend. The 52-week high of $139.34 seems a distant memory, with the current price action around $40.

A critical support level has formed at $38.23, which has held so far. A decisive break below this line would likely trigger a new wave of selling. Conversely, any recovery faces immediate and substantial resistance; the chart would only begin to look healthier if the price sustains a level above $50. For now, the primary trend continues to point downward.

Wood's investment creates a notable divergence between the crashing share price and the company's persistent double-digit revenue growth. The coming weeks will determine whether this contrarian wager pays off or if The Trade Desk remains under sustained pressure.