Trade Desk (TTD) Faces Fresh Competitive Pressure as Netflix Teams With Amazon for Ad Sales

• In the past week, Netflix and Amazon announced a partnership enabling advertisers to purchase Netflix ad inventory through Amazon’s demand-side platform, with the service launching in the fourth quarter of 2025 across multiple major markets.
• This collaboration signals growing competition for independent ad-tech firms like The Trade Desk as leading digital platforms further consolidate advertising spend and channel access.
• We’ll now examine how the Amazon-Netflix partnership could influence The Trade Desk’s growth outlook amid rising competitive headwinds.

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Trade Desk Investment Narrative Recap

To be a shareholder in The Trade Desk, you need to believe its data-driven platform can keep capturing ad dollars as brands shift from linear to connected TV (CTV) and seek more measurable results. The Amazon-Netflix tie-up challenges the immediacy of that CTV growth story by concentrating top-tier streaming inventory within a rival’s ecosystem, raising near-term uncertainty around Trade Desk’s ability to sustain its CTV leadership. The most pressing risk remains whether “walled gardens” like Amazon will limit Trade Desk’s share gains in premium digital video.

The recent launch of The Trade Desk’s AI-powered Kokai platform is highly relevant here, as it has been promoted as a major upgrade in campaign performance and precision. While the automation, measurable outcomes, and supply chain transparency offered by Kokai could reinforce The Trade Desk’s core differentiation, the Amazon-Netflix news brings into sharper focus how well innovation alone can offset new headwinds around access and inventory concentration.

But before considering any next steps, investors should also be mindful of potential revenue shocks if global brands...

Read the full narrative on Trade Desk (it's free!)

Trade Desk's outlook projects $4.3 billion in revenue and $823.2 million in earnings by 2028. This relies on analysts' assumptions of 17.1% annual revenue growth and a $406 million increase in earnings from the current $417.2 million.

Uncover how Trade Desk's forecasts yield a $74.48 fair value, a 65% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members have published 33 fair value estimates for The Trade Desk ranging from US$39.48 to US$111.31. With ad dollars shifting toward walled gardens, contrasting opinions remind you to weigh up shifting access to premium inventory as you explore these diverse views.

Explore 33 other fair value estimates on Trade Desk - why the stock might be worth 13% less than the current price!

Build Your Own Trade Desk Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Trade Desk research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Trade Desk research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Trade Desk's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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