The Trade Desk Shares Face Renewed Pressure as European Trading Signals Weakness

The Trade Desk US88339J1051

As U.S. markets remain closed for a holiday, early trading activity in Europe is providing a bearish signal for The Trade Desk. Trading on the Frankfurt and Düsseldorf exchanges indicates selling pressure is continuing, raising significant questions about whether the stock can maintain support at the $35 level when U.S. trading resumes.

In Frankfurt, the shares are currently trading around €29.74, representing a decline of approximately 0.85% from the previous session. The picture appears even weaker in Düsseldorf, where the price stands at €29.72, a drop of more than 3.5%.

The current weakness in European markets follows a pronounced sell-off at the close of the previous week in the United States. On Friday, the stock concluded Nasdaq trading at $35.48, hovering just above its daily low of $35.23.

Key technical observations highlight the challenging landscape:

• Fresh 52-Week Low: The decline into the $35 range marks the equity's lowest point in over a year, decisively breaking through previous support zones.
• Significant Distance from Key Averages: The share price sits notably below the 50-day moving average (around $38.95) and far beneath the 200-day moving average (approximately $52.72). This positioning confirms the stock is entrenched in a strong downward trend from a technical perspective.
• Elevated Trading Volume: Friday's decline was accompanied by substantial trading volume, suggesting increased selling activity from larger institutional holders.

Cumulatively, the stock has lost roughly 70% of its value within a twelve-month period, with no clear signs of trend stabilization emerging yet.

Divergent Analyst Views and Market Sentiment

Despite the sharp price depreciation, analyst opinions remain mixed, contributing to an uncertain outlook.

• Rating Upgrade: On January 12, MoffettNathanson raised its rating on the stock from "Sell" to "Neutral." The firm cited a significantly reduced valuation following the extended correction, suggesting the shares may be approaching a potential floor.
• Revised Price Targets: Truist Securities lowered its price target to $85 while maintaining a "Buy" recommendation, acknowledging the weak technical posture. Guggenheim holds a more conservative view with a reduced target of $50.
• Retail Investor Optimism: In forum discussions dated January 18, many retail investors pointed to what they see as an attractive risk-reward profile looking ahead to 2026. However, the broader market continues to price in substantial risks, as reflected in the persistent downtrend.

This combination of lowered—yet still optimistic—price targets and weak price action is fostering a tense atmosphere around the stock.

Key Levels and Sector Factors for the Week Ahead

All attention turns to pivotal price levels and industry-specific headwinds as U.S. exchanges reopen.

Critical factors to monitor include:

• The $35 Support Level: This threshold holds significant psychological importance. A clear breakdown below it could trigger additional stop-loss selling, amplifying downward pressure in the short term.
• Sector-Wide Pressures: The broader advertising technology sector is grappling with concerns over potential spending cuts from clients. These worries continue to weigh on the stock, even as the company has recently reported revenue growth.
• European Lead: If the weakness observed in Frankfurt persists or intensifies, it increases the likelihood of a lower opening on the Nasdaq, potentially with a downward gap.

The imminent resumption of U.S. trading will determine whether the $35 level provides even temporary support or if the prevailing downtrend is set to enter a new, deeper phase.