Communications Services Stocks Rise Amidst Disappointing Earnings, Meta Settles Defamation Suit

Communications Services stocks rose despite disappointing earnings reports. Trade Desk stock fell after the ad-tech company projected slower 3Q growth and announced a new CFO. Meta Platforms settled a defamation lawsuit with conservative activist Robby Starbuck over a chatbot's false claim about his participation in the January 6, 2021, US Capitol riot.

July 02, 2025

Communications services stocks experienced a mixed day on Friday, with several companies reporting disappointing earnings while others saw their shares rise. Notably, shares of The Trade Desk (TTD) plunged nearly 40% after the company reported a slowdown in growth and announced a new CFO. Despite these challenges, Meta Platforms (FB) settled a defamation lawsuit with conservative activist Robby Starbuck, which may have contributed to a positive sentiment in the broader market.

The Trade Desk, an ad-tech company, reported a 19% increase in year-over-year revenue to $694 million, beating estimates by $9 million. However, the company's shares fell significantly due to the announcement of a new CFO and projections of slower third-quarter growth. The company forecast current quarter revenue of at least $717 million, implying annual growth closer to 14%. Analysts at Bank of America downgraded the stock to Underperform and dropped its price target to $50 from $130 [3].

The departure of CFO Laura Schenkein, who will be replaced by board member Alex Kayyal, added to investor concerns. The company's 3Q outlook implies a deceleration in underlying growth, making it harder to dismiss recent concerns [3].

Meta Platforms, on the other hand, settled a defamation lawsuit with conservative activist Robby Starbuck. The settlement involved a chatbot's false claim about Starbuck's participation in the January 6, 2021, US Capitol riot. The settlement terms were not disclosed, but the resolution of the lawsuit may have contributed to a positive sentiment in the broader market.

Despite the challenges faced by The Trade Desk, communications services stocks generally rose on Friday. The sector's performance was buoyed by the overall positive market sentiment and the resolution of the Meta Platforms lawsuit.

References:
[1] https://techsauce.co/en/pr-news/gartner-leo-satellite-market-forecast-2026-en
[2] https://www.cnbc.com/2025/08/08/trade-desk-tanks-cfo-departure-q2-results-amazon-competition.html
[3] https://finance.yahoo.com/news/the-trade-desk-stock-crashes-falls-38-as-growth-slows-company-replaces-cfo-150538526.html