Trade Desk Inc. (TTD) shares plummeted 16.81% in pre-market trading, extending a significant decline that began in the after-hours session following the company's quarterly earnings release.

The advertising technology company reported fourth-quarter results that slightly exceeded analyst expectations, with revenue of $847 million beating estimates and adjusted earnings of $0.59 per share surpassing consensus. However, investors reacted negatively to the company's first-quarter 2026 revenue outlook of at least $678 million, which fell short of analyst estimates of approximately $689 million.

The weak guidance reflects a continued growth slowdown at Trade Desk, with projected first-quarter year-over-year revenue growth of just 10.1%, down from 14.3% in the fourth quarter of 2025. CEO Jeff Green highlighted sustained weakness among large consumer packaged goods companies and automotive advertisers, which together account for more than a quarter of the company's business. Additionally, the company faces mounting competitive pressure from larger rivals such as Amazon and Google in the digital advertising market.