Cloud-based advertising technology company Trade Desk saw its stock tumble by more than 30% in premarket trading on Friday, as concerns over global economic pressures—especially lingering tariff uncertainty—spooked investors and triggered a sell-off. The steep decline, if sustained, is poised to wipe out over $12 billion from the company’s market capitalization.

The sharp downturn followed comments from CEO Jeff Green, who warned that major global advertisers—Trade Desk’s core clientele—are pulling back on ad spending amid an unpredictable trade policy environment. Green noted that changing international tariffs have created caution among brands, particularly in sectors directly affected by these economic headwinds, leading many to delay or scale back marketing campaigns.

Unlike some of its competitors who cater primarily to small and mid-sized businesses, Trade Desk’s business model is heavily dependent on large, multinational brands, making it more exposed to fluctuations in the global economic climate. This strategic positioning, while lucrative in times of stable growth, has now emerged as a vulnerability.

“In an unusual development, Trade Desk decelerated and grew slower than Meta’s 22% growth rate this quarter—a pace that actually marked an acceleration for Meta,” said Barton Crockett, analyst at Rosenblatt Securities. “This has raised concerns that closed platforms are expanding more rapidly than the open internet, and TTD’s strong exposure to large brands only adds to the pressure.”

Despite the market’s strong reaction, Trade Desk's guidance for the current quarter remains stable. The company forecasts at least $717 million in revenue, a figure largely in line with analyst expectations, according to data compiled by LSEG (formerly Refinitiv).

Still, investor confidence has been shaken. At least seven analysts have lowered their price targets for the stock in response to the earnings report and outlook, bringing the median target down to $84, also based on LSEG data.

In a leadership update, Trade Desk also announced the appointment of Alex Kayyal as the company’s new Chief Financial Officer, effective August 21. He will replace Laura Schenkein, who has held the position during a pivotal phase of the company’s growth and expansion.

As Trade Desk navigates mounting external pressures, including geopolitical and economic uncertainty, investors and industry observers will be closely watching how the company recalibrates its strategy to weather the downturn—particularly as the digital advertising landscape becomes increasingly dominated by closed ecosystems like Meta and Google.