Both The Trade Desk (TTD) and Amazon (AMZN) are positioned to benefit from a growing digital advertising market, projected to expand at a CAGR of 13.2% from 2026 to 2035, according to Precedence Research. Amazon’s ad revenues surged 26% year over year to $19.8 billion in Q2 2026, while TTD’s revenue growth slowed to just 3% in the same period, reflecting pressure from lower consumer spending and economic uncertainty.
Amazon’s total revenues rose 20% to $200.6 billion in Q2, while TTD forecasts third-quarter revenues of at least $650 million and adjusted EBITDA of approximately $160 million. Year to date, TTD’s share price has dropped 60.5%, contrasting with a 7.6% increase for AMZN. Analysts have downgraded earnings estimates for TTD, while AMZN’s have risen by 46.4% over the past two months.
The competitive landscape for digital advertising is intensifying, with major players like Meta, Alphabet, and Amazon dominating the space. TTD carries a Zacks Rank #4 (Sell) currently, while AMZN is rated #3 (Hold), indicating a more favorable outlook for AMZN.
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