Trade Desk (TTD) posted a strong Q4 beat, but rising competition and lofty Street estimates could weigh on shares as growth slows and margin pressure builds, Wedbush Securities said in a Thursday note.

The brokerage said Trade Desk should sustain revenue growth on the shift to CTV and digital ads, strong open-internet integrations and its content-agnostic model, but warned that vertically integrated DSP rivals could erode its pricing power and long-term margins.

The Q1 guidance trailed expectations, with revenue projected at at least $678 million and adjusted earnings before interest, taxes, depreciation, and amortization around $195 million, reflecting continued weakness in CPG and auto advertising. Analysts surveyed by FactSet expect revenue of $681.8 million.

Wedbush added that Trade Desk risks becoming a price-taker as ad spend shifts to integrated platforms, pressuring take rates and data access, and questioned whether its Ventura CTV push can dent entrenched systems like Roku (ROKU), Amazon (AMZN) or Android TV.

The firm maintained a neutral rating on the stock with a $23 price target.

Shares were down more than 4.7% in recent trading.

Price: 24.11, Change: -1.06, Percent Change: -4.19