Institutional Investors Signal Confidence in The Trade Desk Amid Market Turbulence

Following a challenging period of significant share price depreciation, The Trade Desk is showing early signs of stabilization. While the stock's year-to-date performance remains under pressure, a notable trend is emerging: major institutional players are using the current valuation to establish or substantially increase their stakes. A recent, massive purchase by one asset manager underscores this shift in sentiment.

Recent filings with the U.S. Securities and Exchange Commission (SEC) reveal that Brookstone Capital Management has aggressively expanded its position in The Trade Desk. The asset manager boosted its holdings by a substantial 2,873.5%, acquiring an additional 148,932 shares.

• Brookstone's total holdings: 154,115 shares
• Holding value at filing: approximately $7.55 million
• Current share price: ~$38.12
• Daily change: +1.82%
• Year-to-date performance: ~ -68%
• Company market capitalization: ~$18.4 billion

This transaction elevates Brookstone to a more prominent position among the company's institutional shareholders. Such an aggressive accumulation suggests that certain professional investors view the current market pricing as an opportunity, despite the weak price action observed so far in 2025.

Operational Strength Contrasts with Share Price Weakness

The company's fundamental business performance appears considerably more robust than its stock chart implies. For the third quarter of 2025, The Trade Desk reported revenue of $739.4 million, representing year-over-year growth of nearly 18%. Earnings per share came in at $0.45, slightly exceeding the consensus estimate of $0.44.

In a direct response to the share price decline, the company's board authorized a $500 million share repurchase program in November. This initiative allows the company to buy back up to 2.1% of its outstanding shares. Stock buybacks can reduce market supply and are often interpreted as a signal from management that they believe the shares are undervalued.

Should investors sell immediately? Or is it worth buying The Trade Desk?

Nasdaq-100 Delisting and Subsequent Pressure

A key driver behind the stock's steep decline this year has been its removal from the Nasdaq-100 index. Such an index change typically triggers automatic selling from exchange-traded funds (ETFs) and other index-tracking funds, creating a persistent overhang of selling pressure.

Over the past twelve months, the share price has declined by approximately 68%. In today's session, the stock opened at $38.06 and managed to hold onto modest gains, outperforming many other technology names during a quiet holiday week. The recent trading pattern hints that the most intense selling pressure following the index exit may be starting to abate, making substantial institutional purchases like Brookstone's particularly conspicuous.

Analyst Outlook and Valuation Context

Market analysts currently maintain an average rating of "Moderate Buy" on the equity. The consensus price target sits significantly above the current trading level near $38. Some individual forecasts see potential for the stock to reach above $76, which would imply a near-doubling in share price if The Trade Desk successfully navigates prevailing macroeconomic headwinds.

The valuation picture presents a mixed narrative. On one hand, the stock remains technically burdened by the Nasdaq-100 exit and broader sector rotation. On the other, strong revenue growth, sustained profitability, and clear institutional buying interest suggest a potential foundation is being built around current levels. The shares now trade at roughly 21 times forward earnings estimates—a historically moderate multiple for a high-growth advertising technology company.

The decisive move by Brookstone Capital Management, coupled with the active share repurchase program, sets the stage for a critical test as 2025 transitions into 2026. The market will watch closely to see if these factors can cement support around $38 or if the correction evolves into an extended period of sideways movement.