Two unconnected pieces of news have weighed on the programmatic advertising specialist

Stock of The Trade Desk Inc. (TTD) plummeted on Friday, plunging as low as 11.1%. It is now 2:28 p.m. ET, the stock was still down 6.9%.
 
WAN CHAI, Hong Kong - Sept. 12, 2022 - PRLog -- There were two factors that pushed the ad tech stock down. The unexpected resignation of a high-ranking executive, along with evidence of a reduction in ad expenditure, both sent the stock plunging.

TTD stated that chief data officer, Michelle Hulst, will leave her job effective today in a regulatory filing released after the market closed yesterday. Her departure was not explained by the firm. When a C-suite executive quits, there are usually questions about what triggered the departure and if the organization will be able to locate a suitable successor in a timely manner.

Hulst has been with TTD since mid-2020, climbing through the ranks from executive vice president of data and strategy to chief operating officer and then chief data officer.

Furthermore, streaming pioneer Roku Inc. (ROKU) revealed its second-quarter earnings after the market closed on Thursday and the disappointing numbers and management commentary alarmed TTD investors. ROKU derives the majority of its revenue from digital advertising displayed on its platform and growth has slowed to a crawl. Its management highlighted a "significant slowdown in TV advertising expenditure owing to the macroeconomic climate, which pressed our platform revenue growth... we expect these challenges to persist in the near future as economic worries push markets globally."

Given TTD's reliance on advertising, investors are wise to keep a close check on the outcomes of other firms in the area. Marketing and advertising are historically among the first costs slashed by enterprises when confronted with an uncertain economy.

These worries were heightened yesterday when the U.S. The Bureau of Economic Analysis issued preliminary GDP figures, which showed that the economy declined for the second consecutive quarter, fitting the historical definition of a recession.

It's worth noting that TTD encountered comparable issues during the start of the pandemic and weathered the storm well. While there may be short-term headwinds, TTD's cutting-edge technology and industry-leading position make the company a keeper.

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