The Trade Desk Inc (NASDAQ: TTD) shares are trading lower Friday in sympathy with Roku Inc (NASDAQ: ROKU), which reported worse-than-expected financial results and issued weak guidance.
Roku said second-quarter revenue increased 18% year-over-year to $764.4 million, which missed the estimate of $805.64 million, according to data from Benzinga Pro. The company reported a quarterly earnings loss of 82 cents per share, which missed the estimate for a loss of 68 cents per share.
Roku said it expects third-quarter revenue to increase about 3% year-over-year to $700 million versus the estimate of $901.73 million. The company also said it's withdrawing its full-year revenue growth guidance, citing uncertainties and volatility in the macro environment.
Related Link: What's Going On With Roku Stock Today?
"In Q2, there was a significant slowdown in TV advertising spend due to the macro-economic environment, which pressured our platform revenue growth. Consumers began to moderate discretionary spend, and advertisers significantly curtailed spend in the ad scatter market," Roku said Thursday in a letter to shareholders.
The Trade Desk provides a technology platform for ad buyers. Friday's weakness is likely the result of comments from Roku on slowing advertising spend.
The company also filed a Form 8-K with the SEC on Thursday indicating that its chief data officer Michelle Hulst agreed to step down from her role on July 26. Her departure is effective as of July 29.
The Trade Desk is set to report its second-quarter financial results after the market closes on Aug. 9.
TTD Price Action: The Trade Desk has a 52-week high of $93.26 and a 52-week low of $39.
The stock was down 8.72% at $43.02 at time of publication.
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