Trade Desk (TTD) shares tanked nearly 40% on Friday after the ad-tech firm came in ahead of Street estimates for its fiscal Q2 but said tariffs will materially hurt performance in the current quarter. 

Also on Friday, the company announced a surprise departure of its CFO Laura Schenkein, naming Alex Kayyal as her immediate replacement. 

Trade Desk stock has been a big disappointment for its investors since the start of this year. At the time of writing, it’s down well over 50% versus its high in early January. 

What a CFO Transition Means for Trade Desk Stock

The unexpected leadership turnover added to investor woes this morning as it raises concerns about strategic continuity, especially as TTD faces competitive pressure from the likes of Amazon (AMZN).

Schenkein’s surprise exit after a decade of financial leadership signals uncertainty at a time when macro headwinds are already expected to result in revenue deceleration in Q3. 

BofA Downgrades TTD Shares to Underperform

Bank of America’s senior analyst Jessica Ehrlich cautions against buying the post-earnings dip in Trade Desk shares mostly because of competition and execution-related risks. 

While the Nasdaq-listed firm may still continue to growth its revenue by double-digit percentages, “it’s challenging to justify the premium multiple it has historically received,” she told clients in a research note today. 

On Friday, Ehrlich downgraded TTD stock to “Underperform” and slashed her price target in more than half to $55 only, roughly in line with the price at which it’s trading at the time of writing. 

How Wall Street Recommends Playing Trade Desk

Note that Wall Street had a consensus “Moderate Buy” rating on Trade Desk stock tied to an average price target of about $91 heading into its earnings release. 

However, it’s well within reason to expect downward revisions after TTD’s financial and operational updates on Friday.