The latest earnings round shows public markets aren’t for the faint-hearted

In recent weeks, the ad tech sector’s leading lights have issued their financial results for the closing quarter of 2024 — traditionally, the big-money period of the financial year — and while almost all reported numbers that were up and to the right, the markets reacted negatively.

The year 2025 has been widely touted as a comeback year for mergers and acquisitions, and even some initial public offerings, in ad tech, although Wall Street’s reactions to the latest round of earnings calls from companies in the sector will likely prove a drag on valuations.

For example, revenues for the sector’s big two, i.e., AppLovin and The Trade Desk, issued double-digit annual revenue increases (44% and 26%, respectively), but the slings and arrows of the public markets resulted in precipitous price declines in recent weeks.

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