Both The Trade Desk (TTD) and Amazon (AMZN) are positioned to benefit from growth in the digital advertising sector, expected to expand at a CAGR of 9.38% from 2026 to 2035. In Q4 2025, Amazon’s advertising revenue reached $21.3 billion, a 22% year-over-year increase, while The Trade Desk’s video revenue, including connected TV (CTV), accounted for 50% of its business during the same period.
As of Dec. 31, 2025, Amazon reported cash reserves of $86.8 billion against long-term debt of $65.6 billion, emphasizing its strong financial position. For comparison, TTD’s shares trade at a forward P/E ratio of 11.21X, lower than Amazon’s 30.11X. Over the past month, TTD shares rose 0.4%, while AMZN shares saw an 18.2% increase.
Investors should note that both companies carry a Zacks Rank #3 (Hold). However, Amazon’s diversified business model encompassing retail, cloud, AI, and advertising positions it as a potentially stronger investment compared to TTD’s narrower focus on ad-tech.
