Why Did TTD, OPEN, QS Stocks Tumble To 52-Week Lows Today?

Investors grew more cautious about advertising demand, housing activity and emerging technology businesses.

• The Trade Desk shares fell to a seven-year low of $12.18 as investors worried about weaker advertising spending. 
• High mortgage rates and weak housing activity have hurt Opendoor’s home-buying business. 
• QuantumScape shares hit a new 52-week low of $4.54, down 63% over the past year. 

Trade Desk (TTD), Opendoor Technologies (OPEN) and QuantumScape (QS) stocks hit fresh 52-week lows on Monday as investors continued to retreat from higher-risk stocks. Concerns over advertising spending, elevated borrowing costs, housing-market weakness and lengthy technology commercialization timelines have weighed on sentiment, putting pressure on companies that rely on future growth to support valuations. 

Opendoor and QuantumScape stocks tumbled more than 5% and 7%, respectively, while The Trade Desk stock fell more than 2%. 

The Trade Desk Faces Selling Pressure

The Trade Desk stock plunged to a seven-year low of $12.18 as investors grew more concerned about the outlook for programmatic advertising as companies take a closer look at marketing budgets.

Amazon is a major threat to The Trade Desk because it can use shopping and customer data to improve its advertising tools. Lower fees could also push advertisers to spend less with TTD. Automation is another challenge. Google, Meta, Amazon and AppLovin can use their large data sets to offer simpler, automated advertising tools, while TTD depends more on outside data. The company’s deletion from the S&P 500 has also added to the woes. 

On Stocktwits, retail sentiment around the stock remained ‘bullish’. 

Opendoor Remains Under Housing Pressure

Opendoor Technologies stock continued its prolonged decline, hitting a 52-week low of $2.42 as its technology-driven home-buying model remains exposed to difficult conditions in the residential real estate market.

High mortgage rates have kept potential buyers and sellers on the sidelines, limiting housing activity. At the same time, Opendoor must manage the costs and risks associated with holding homes as inventory. 

Opendoor’s fiscal second-quarter (Q2)  revenue fell 44% to $883 million, while the net loss more than quintupled to $162 million. Also, a sharp housing-market slowdown in late August has delayed the company’s path to profitability by about six to eight weeks. Retail sentiment around the stock dropped to ‘bearish’ from ‘neutral’. 

QuantumScape Tests Investor Patience

QuantumScape stock also hit a fresh 52-week low at $4.54, extending a 63% decline over the past year. The company is developing solid-state battery technology aimed at future electric vehicles.

QuantumScape has continued working toward commercial-scale production and has partnerships with automotive companies including Volkswagen. However, the business remains pre-revenue, leaving the stock sensitive to investor risk appetite and financing conditions. However, retail sentiment around the stock remains ‘bullish’. 

So far this year, TTD, OPEN and QS stocks have crashed between 56% and 67%.

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