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Published March 25, 2025
Investors and analysts were shocked when the Trade Desk revealed its revenue plummeted after it botched the rollout of its new AI technology. Furious investors quickly dumped their shares, causing Trade Desk’s stock price to plunge 32%. Now, investors are taking legal action against the Company.
The Trade Desk is a digital marketing company that helps marketers plan ad campaigns. In 2023 it unveiled a new AI-assisted ad technology, “Kokai,” that would help advertisers manage budgets. Trade Desk executives claimed Kokai would take about a year to launch.
But Trade Desk botched the roll out. In February 2025, the Company announced Kokai’s roll-out was taking much longer than expected. Investors and analysts were stunned when the Company revealed this delay was “intentional.” The news got worse when Trade Desk revealed revenue had cratered and upcoming revenue was going to be less than expected, too.
After the news, investors sold their shares and Trade Desk’s stock price plunged. Some of those investors are now joining the lawsuit.