When a stock has high expectations, you don't get much forgiveness.

You're listening to Motley Full Money.

I'm Ricky Mulvey. I'm Ricky Mulvey, joined today in person in Denver with Alicia Alfieri.

Alicia, it is so good to see. We've been chatting for an hour, but it's still good to see you.

It's so great to be here in person, in real life.

To break down some earnings from the trade desk and Robin Hood. The tradek got absolutely cooked in its latest earnings, Alicia.

Basically, the Trade Desk is a demand-side ad platform. That means they help advertising agencies

place buys across the internet and streaming services now and retail. Revenue grew by about

26% year-over-year, but that's not the headline. CEO Jeff Green said, quote, I want to acknowledge

upfront for the first time in 33 quarters as a public company. We fell short of our own expectations,

end quote, not Wall Street expectations, but company guidance. Alicia, first missed in 33 quarters,

but why is the market reacting so strongly to it? Yeah, so there are a few different reasons. So first, let's take into account the fact that

the Trade Desk has been an incredible performer since it went public back in 2016. So it's

grown its top line and generated free cash flow every year. Since its IPO, the stock was,

as of yesterday at least, a 40-bagger, but all that performance

comes at a cost in terms of valuation and expectations.

And it's never really been a cheap stock, right?

And so because there's so much valuation or so much expectation baked into that valuation,

anytime you have a bump in the road,

you're going to see the stock take a hit.

So let's take expectations out for just a moment. How's the actual business of the trade

desk doing?

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