Volatile February: Trade Desk and Tesla Face Major Declines

February saw substantial declines for both The Trade Desk and Tesla. Stakeholders must consider the future of these stocks amidst lofty valuations and recent earnings. Investors are left wondering whether these declines are temporary or indicative of a longer-term downturn.

Date: 22-03-2025

AI Rating: 4

Earnings Reports and Stock Performance

In February 2025, the Nasdaq-100 index fell by nearly 3%, with The Trade Desk and Tesla emerging as the most affected stocks. The Trade Desk witnessed a staggering drop of almost 41%, attributed to a revenue miss and its high P/E ratio, which stands at over 150 before the fall.

Tesla, on the other hand, reported a monthly loss of just under 28%. This decline is tied to a reported revenue drop, despite increased sales volumes, and concerns surrounding falling international sales and distractions linked to CEO Elon Musk.

Valuation Concerns

The Trade Desk's current P/E ratio has decreased to 71 after the revenue miss, easing some valuation concerns. In contrast, Tesla's P/E began the month at around 200 and has reduced to 114, highlighting investors' perception issues.

Despite these challenges, both companies maintain leadership positions in their sectors. If operational improvements are realized, investors may view the current price declines as a potential buying opportunity.

Stocks: TTD TSLA